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Test your basic knowledge |
DSST Personal Finance 2
Start Test
Study First
Subjects
:
dsst
,
personal-finance
,
bvat
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Items for enjoyment ex: eating out - entertainment - luxury items
discretionary income
wants
Securities and Exchange Commission (SEC)
3 major credit bureaus
2. A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.
electronic banking
reasons to invest in stocks
simple interest
credit report
3. Salary - wages - interest - campital gains - commission
emergency fund
factors that affect your income
bankruptcy
opportunity cost
4. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
things that affect loans
3 major credit bureaus
National Association of Securities Dealers Automated Quotations (NASDAQ)
short term goals
5. Stocks that pay low dividends - but are expected to grow
return
reasons to invest in stocks
budget
growth stocks
6. Interest paid on the principal alone (I=p x r x t)
return
simple interest
discretionary income
growth stocks
7. Be careful using credit cards - understand how much debt you have - pay off debt ASAP - pay off in full and on time - consolidate credit cards to low interest rate card
wants
Landlord
tips for using credit wisely
types of risk
8. Set costs that must be paid such as rent - insurance - and car payments
long term goals
blue chip stocks
fixed expenses
bankruptcy
9. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
short term debt
liquidity
Dow Jones
Kelley Blue Book
10. Oldest and largest by volume traded and market cap (2800 companies) - issued at least 1 million shares worth $100 million - earned more than $10 million in last 3 years
risk
supply
New York Stock Exchange (NYSE)
Rule of 72
11. The money an investor receives above and beyond the sum of money initially invested
return
financing an item
Rule of 72
chapter 7
12. Enforces securities laws and regulates the securities industry
short term goals
Securities and Exchange Commission (SEC)
fixed expenses
Rule of 72
13. Can be profitable - liquid
simple interest
reasons to invest in stocks
variable expenses
interest
14. The price of an item will go down if there is little demand or low supply. The price of an item will go up if there is a lot of demand or high amounts of supply.
savings account
bankruptcy
needs
Law of Supply and Demand
15. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
factors that affect a mortgage
Kelley Blue Book
variable expenses
3 major credit bureaus
16. Protects depository institution accounts - incures commercial banks and savings and loan
compound interest
short term goals
Federal Deposit Insurance Corporation (FDIC)
interest can benefit you when...
17. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
risk
Federal Deposit Insurance Corporation (FDIC)
Landlord
18. Pursues payments on debts owed by individuals or businesses
New York Stock Exchange (NYSE)
demand
emergency fund
collection agency or debt collector
19. Allows pay back of debt with more time - court oversees repayment of plan
New York Stock Exchange (NYSE)
net pay
chapter 13
interest can be bad for you when....
20. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
Landlord
time value of money
interest can be bad for you when....
Annual percentage rate (APR)
21. The availability of a good or service
tax deferred
collection agency or debt collector
dividend
supply
22. Time - amount of money - rate of interest
interest can benefit you when...
Tenant
time value of money
Law of Supply and Demand
23. High-priced common stocks that have been strong - profitable stocks for a long period of time.
opportunity cost
certificate of deposit or CD
blue chip stocks
credit record
24. You are being paid for it (ex: investment)
insurance
interest can benefit you when...
Dow Jones
certificate of deposit or CD
25. Risky
supply
reasons not to invest in stocks
Kelley Blue Book
Tenant
26. Interest rates - length of time to borrow money
fixed expenses
compound interest
things that affect loans
certificate of deposit or CD
27. Ability to convert to cash and maintain value
budget
liquidity
demand
return
28. Account to help you save money and earn a small amount of interest at the same time
savings account
factors that affect a mortgage
tips for using credit wisely
Annual percentage rate (APR)
29. The money left to spend or save after taxes have been paid
Kelley Blue Book
net pay
National Association of Securities Dealers Automated Quotations (NASDAQ)
disposable income
30. The desire of a good or service
compound interest
time value of money
discretionary income
demand
31. Consumer Price Index is the measure that examines the weighted average of prices of a basket of consumer goods and services - such as transporation - food and medical care.
32. Only responsible for the building and the property in the case of an event like fire - water damage
Landlord
wants
reasons to invest in stocks
tax deferred
33. Expenses that change from month to month
chapter 13
short term goals
tips for using credit wisely
variable expenses
34. The possibility for loss on an investment
long term goals
risk
Securities and Exchange Commission (SEC)
return
35. Lenders must disclose all costs of credit
Truth in Lending Act
Dow Jones
Landlord
how insurance is related to risk management
36. Items you need to survive ex: food - water
needs
how insurance is related to risk management
interest can be bad for you when....
factors that affect a mortgage
37. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
interest can benefit you when...
emergency fund
opportunity cost
wants
38. The increase in price of goods and services
types of risk
chapter 7
interest can be bad for you when....
inflation
39. Agree to be responsible for loan payments if the other person can't make them
disposable income
co-signing a loan
Dow Jones
gross pay
40. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
Pay Yourself First (PYF)
interest can benefit you when...
fixed expenses
41. Equifax - Experian - TransUnion
Securities and Exchange Commission (SEC)
reasons not to invest in stocks
3 major credit bureaus
electronic banking
42. Formula used to calculate how many years it would take to double an investment
tips for using credit wisely
Rule of 72
interest can be bad for you when....
demand
43. You owe money (ex: credit card - loan)
reasons not to invest in stocks
interest can be bad for you when....
interest can benefit you when...
risk
44. A plan for managing your money for a given period of time
time value of money
co-signing a loan
budget
credit report
45. Income risk - personal risk - liquidity risk - interest rate risk
chapter 13
types of risk
3 major credit bureaus
wants
46. Carefully planned - practical - flexible - written and accessible
tips for a successful budget
long term goals
CPI's relation to inflation
short term debt
47. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
collateral
short term debt
opportunity cost
insurance
48. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
net pay
things that affect loans
debit card
49. A card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account
debit card
needs
collateral
compound interest
50. Goal in which you plan to prepare for and reach in the distant future - over 5 years
certificate of deposit or CD
long term goals
risk
chapter 7