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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. 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
National Association of Securities Dealers Automated Quotations (NASDAQ)
return
tips for using credit wisely
electronic banking
2. A way to guarantee your financial protection against various risks
insurance
Kelley Blue Book
Federal Deposit Insurance Corporation (FDIC)
3 major credit bureaus
3. Protects you from the probability that injury - damage or loss will occur
short term debt
how insurance is related to risk management
reasons not to invest in stocks
Annual percentage rate (APR)
4. Enforces securities laws and regulates the securities industry
types of risk
simple interest
Rule of 72
Securities and Exchange Commission (SEC)
5. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
disposable income
Securities and Exchange Commission (SEC)
dividend
tax deferred
6. 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
interest
certificate of deposit or CD
short term goals
New York Stock Exchange (NYSE)
7. Goal in which you plan to prepare for and reach in the distant future - over 5 years
Pay Yourself First (PYF)
reasons not to invest in stocks
debit card
long term goals
8. 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.
time value of money
risk
Law of Supply and Demand
Truth in Lending Act
9. 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.
Rule of 72
savings account
gross pay
credit report
10. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
factors that affect your income
collateral
debit card
tax deferred
11. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
National Association of Securities Dealers Automated Quotations (NASDAQ)
short term goals
chapter 13
savings account
12. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
long term goals
variable expenses
National Association of Securities Dealers Automated Quotations (NASDAQ)
Dow Jones
13. The money left to spend or save after taxes have been paid
diversification
net pay
financing an item
disposable income
14. Lenders must disclose all costs of credit
Truth in Lending Act
net pay
Securities and Exchange Commission (SEC)
New York Stock Exchange (NYSE)
15. The total amount of an employee's earnings before deductions are taken out
gross pay
Landlord
Federal Open Market Committee (FOMC)
insurance
16. Goal in which you plan to reach in the near future - one year or less
co-signing a loan
savings account
tax deferred
short term goals
17. Stocks that pay low dividends - but are expected to grow
interest
growth stocks
Rule of 72
chapter 7
18. Only responsible for the building and the property in the case of an event like fire - water damage
blue chip stocks
chapter 7
New York Stock Exchange (NYSE)
Landlord
19. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
Federal Reserve System (FED)
diversification
New York Stock Exchange (NYSE)
20. Protects depository institution accounts - incures commercial banks and savings and loan
inflation
Federal Deposit Insurance Corporation (FDIC)
Truth in Lending Act
gross pay
21. A plan for managing your money for a given period of time
liquidity
Pay Yourself First (PYF)
fixed expenses
budget
22. Can be profitable - liquid
interest
how insurance is related to risk management
reasons to invest in stocks
simple interest
23. Items you need to survive ex: food - water
risk
return
dividend
needs
24. Risky
types of risk
inflation
reasons not to invest in stocks
net pay
25. 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.
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26. High-priced common stocks that have been strong - profitable stocks for a long period of time.
Federal Reserve System (FED)
blue chip stocks
opportunity cost
Federal Open Market Committee (FOMC)
27. Allows pay back of debt with more time - court oversees repayment of plan
co-signing a loan
things that affect loans
chapter 13
supply
28. Spreading out investments to reduce risk
bankruptcy
diversification
chapter 7
disposable income
29. You owe money (ex: credit card - loan)
reasons to invest in stocks
interest can be bad for you when....
factors that affect a mortgage
Federal Deposit Insurance Corporation (FDIC)
30. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
tips for using credit wisely
Pay Yourself First (PYF)
demand
debit card
31. A fixed charge for borrowing money
risk
interest
bankruptcy
Dow Jones
32. Set costs that must be paid such as rent - insurance - and car payments
New York Stock Exchange (NYSE)
fixed expenses
Federal Open Market Committee (FOMC)
reasons to invest in stocks
33. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
growth stocks
discretionary income
demand
Federal Open Market Committee (FOMC)
34. The total earnings paid to an employee after payroll taxes and other deductions
chapter 13
CPI's relation to inflation
net pay
tax deferred
35. The availability of a good or service
supply
chapter 7
short term goals
liquidity
36. Income risk - personal risk - liquidity risk - interest rate risk
savings account
risk
types of risk
time value of money
37. The desire of a good or service
demand
compound interest
chapter 13
bankruptcy
38. Ability to convert to cash and maintain value
liquidity
savings account
co-signing a loan
debit card
39. Source of information in determining a fair price for a vehicle - new or used
collateral
co-signing a loan
how insurance is related to risk management
Kelley Blue Book
40. Legal process in which some or all of the assets of a debtor are distributed among the creditors because the debtor is unable to pay his or her debts; the legal process of getting out of debt
CPI's relation to inflation
dividend
chapter 13
bankruptcy
41. Pursues payments on debts owed by individuals or businesses
collateral
compound interest
reasons not to invest in stocks
collection agency or debt collector
42. The increase in price of goods and services
inflation
insurance
Landlord
budget
43. 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
Securities and Exchange Commission (SEC)
insurance
debit card
things that affect loans
44. The value of buying one item over another
opportunity cost
gross pay
variable expenses
Landlord
45. Interest paid on the principal alone (I=p x r x t)
disposable income
simple interest
growth stocks
certificate of deposit or CD
46. Account to help you save money and earn a small amount of interest at the same time
savings account
credit record
short term debt
collateral
47. A log of the financial habits of a person who buys on credit.
savings account
credit record
blue chip stocks
wants
48. Responsible for their own personal belongings in the case of an event like fire - water damage
CPI's relation to inflation
Tenant
inflation
long term goals
49. Using computers to carry out transfers of money
short term goals
Law of Supply and Demand
electronic banking
chapter 13
50. You are being paid for it (ex: investment)
budget
interest can benefit you when...
interest can be bad for you when....
mutual funds (MF)