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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. Income risk - personal risk - liquidity risk - interest rate risk
savings account
types of risk
credit report
compound interest
2. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
Rule of 72
Annual percentage rate (APR)
liquidity
factors that affect your income
3. Responsible for their own personal belongings in the case of an event like fire - water damage
long term goals
liquidity
emergency fund
Tenant
4. The total earnings paid to an employee after payroll taxes and other deductions
diversification
Rule of 72
net pay
growth stocks
5. Risky
Pay Yourself First (PYF)
gross pay
interest can benefit you when...
reasons not to invest in stocks
6. You are being paid for it (ex: investment)
collection agency or debt collector
long term goals
interest can benefit you when...
Securities and Exchange Commission (SEC)
7. A fixed charge for borrowing money
budget
interest
needs
savings account
8. Allows pay back of debt with more time - court oversees repayment of plan
types of risk
factors that affect your income
risk
chapter 13
9. A log of the financial habits of a person who buys on credit.
Federal Open Market Committee (FOMC)
credit report
growth stocks
credit record
10. 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.
CPI's relation to inflation
Law of Supply and Demand
how insurance is related to risk management
risk
11. Carefully planned - practical - flexible - written and accessible
Law of Supply and Demand
demand
tips for a successful budget
diversification
12. You owe money (ex: credit card - loan)
Tenant
compound interest
diversification
interest can be bad for you when....
13. Items for enjoyment ex: eating out - entertainment - luxury items
opportunity cost
wants
interest can benefit you when...
Truth in Lending Act
14. The total amount of an employee's earnings before deductions are taken out
tax deferred
3 major credit bureaus
gross pay
how insurance is related to risk management
15. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
budget
chapter 7
co-signing a loan
collection agency or debt collector
16. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
fixed expenses
time value of money
savings account
factors that affect a mortgage
17. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
gross pay
certificate of deposit or CD
collateral
Federal Reserve System (FED)
18. Agree to be responsible for loan payments if the other person can't make them
fixed expenses
co-signing a loan
demand
long term goals
19. Spreading out investments to reduce risk
diversification
chapter 13
National Association of Securities Dealers Automated Quotations (NASDAQ)
credit report
20. The money left to spend or save after taxes have been paid
New York Stock Exchange (NYSE)
disposable income
opportunity cost
Rule of 72
21. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
simple interest
factors that affect your income
liquidity
Pay Yourself First (PYF)
22. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
types of risk
tips for using credit wisely
variable expenses
23. Time - amount of money - rate of interest
credit record
time value of money
Tenant
long term goals
24. 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.
inflation
return
credit report
collateral
25. Interest paid on the principal alone (I=p x r x t)
simple interest
Landlord
interest
emergency fund
26. To borrow money from a bank to purchase an item and pay for it over time
how insurance is related to risk management
financing an item
Pay Yourself First (PYF)
net pay
27. Stocks that pay low dividends - but are expected to grow
blue chip stocks
growth stocks
long term goals
credit report
28. Expenses that change from month to month
short term debt
variable expenses
compound interest
interest
29. Interest rates - length of time to borrow money
reasons to invest in stocks
Law of Supply and Demand
things that affect loans
Dow Jones
30. Salary - wages - interest - campital gains - commission
factors that affect your income
factors that affect a mortgage
chapter 7
fixed expenses
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.
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32. 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
things that affect loans
needs
tips for using credit wisely
Annual percentage rate (APR)
33. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
things that affect loans
insurance
budget
Dow Jones
34. Account to help you save money and earn a small amount of interest at the same time
savings account
Securities and Exchange Commission (SEC)
tips for a successful budget
simple interest
35. Source of information in determining a fair price for a vehicle - new or used
needs
Kelley Blue Book
time value of money
chapter 13
36. Formula used to calculate how many years it would take to double an investment
short term goals
return
tips for using credit wisely
Rule of 72
37. Goal in which you plan to reach in the near future - one year or less
short term goals
Federal Open Market Committee (FOMC)
simple interest
Federal Deposit Insurance Corporation (FDIC)
38. A way to guarantee your financial protection against various risks
liquidity
credit report
interest can be bad for you when....
insurance
39. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
emergency fund
diversification
short term debt
factors that affect your income
40. A plan for managing your money for a given period of time
budget
tax deferred
blue chip stocks
interest can be bad for you when....
41. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
New York Stock Exchange (NYSE)
credit record
National Association of Securities Dealers Automated Quotations (NASDAQ)
42. Using computers to carry out transfers of money
short term debt
CPI's relation to inflation
Law of Supply and Demand
electronic banking
43. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
time value of money
tax deferred
discretionary income
collateral
44. Only responsible for the building and the property in the case of an event like fire - water damage
bankruptcy
blue chip stocks
Law of Supply and Demand
Landlord
45. The value of buying one item over another
opportunity cost
tips for using credit wisely
liquidity
interest can be bad for you when....
46. Ability to convert to cash and maintain value
Law of Supply and Demand
liquidity
fixed expenses
chapter 7
47. Items you need to survive ex: food - water
needs
chapter 13
time value of money
Annual percentage rate (APR)
48. Goal in which you plan to prepare for and reach in the distant future - over 5 years
Landlord
long term goals
credit record
reasons to invest in stocks
49. Debts due within the next year (ex: loans - credit cards)
liquidity
inflation
short term debt
emergency fund
50. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
tax deferred
Truth in Lending Act
how insurance is related to risk management
New York Stock Exchange (NYSE)