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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. Salary - wages - interest - campital gains - commission
compound interest
budget
gross pay
factors that affect your income
2. The availability of a good or service
bankruptcy
supply
Tenant
interest can benefit you when...
3. You are being paid for it (ex: investment)
short term goals
interest can benefit you when...
dividend
Securities and Exchange Commission (SEC)
4. You owe money (ex: credit card - loan)
types of risk
interest can be bad for you when....
Federal Open Market Committee (FOMC)
Dow Jones
5. Lenders must disclose all costs of credit
Law of Supply and Demand
Truth in Lending Act
variable expenses
interest can be bad for you when....
6. Time - amount of money - rate of interest
insurance
fixed expenses
co-signing a loan
time value of money
7. Responsible for their own personal belongings in the case of an event like fire - water damage
budget
compound interest
return
Tenant
8. Can be profitable - liquid
reasons to invest in stocks
net pay
risk
Tenant
9. Interest paid on the principal alone (I=p x r x t)
mutual funds (MF)
compound interest
time value of money
simple interest
10. The possibility for loss on an investment
risk
opportunity cost
interest
Truth in Lending Act
11. To borrow money from a bank to purchase an item and pay for it over time
collection agency or debt collector
financing an item
discretionary income
CPI's relation to inflation
12. Goal in which you plan to prepare for and reach in the distant future - over 5 years
New York Stock Exchange (NYSE)
long term goals
Securities and Exchange Commission (SEC)
tips for using credit wisely
13. Account to help you save money and earn a small amount of interest at the same time
emergency fund
savings account
time value of money
credit record
14. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
factors that affect your income
discretionary income
Dow Jones
factors that affect a mortgage
15. Protects you from the probability that injury - damage or loss will occur
net pay
how insurance is related to risk management
savings account
factors that affect a mortgage
16. A log of the financial habits of a person who buys on credit.
financing an item
short term debt
credit record
long term goals
17. Only responsible for the building and the property in the case of an event like fire - water damage
Landlord
return
liquidity
collection agency or debt collector
18. Items for enjoyment ex: eating out - entertainment - luxury items
chapter 13
wants
electronic banking
Pay Yourself First (PYF)
19. A plan for managing your money for a given period of time
blue chip stocks
compound interest
budget
growth stocks
20. Goal in which you plan to reach in the near future - one year or less
short term goals
tax deferred
fixed expenses
Tenant
21. Allows pay back of debt with more time - court oversees repayment of plan
interest can benefit you when...
emergency fund
diversification
chapter 13
22. Pursues payments on debts owed by individuals or businesses
collection agency or debt collector
tax deferred
Annual percentage rate (APR)
Federal Reserve System (FED)
23. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
short term debt
electronic banking
Pay Yourself First (PYF)
return
24. The desire of a good or service
Federal Deposit Insurance Corporation (FDIC)
credit record
return
demand
25. A fixed charge for borrowing money
long term goals
interest
reasons not to invest in stocks
opportunity cost
26. 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.
27. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
supply
opportunity cost
chapter 7
wants
28. The portion of corporate profits paid out to stockholders
Federal Deposit Insurance Corporation (FDIC)
supply
blue chip stocks
dividend
29. The total earnings paid to an employee after payroll taxes and other deductions
Truth in Lending Act
net pay
wants
Tenant
30. Stocks that pay low dividends - but are expected to grow
insurance
demand
growth stocks
supply
31. 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)
debit card
wants
tips for a successful budget
32. Equifax - Experian - TransUnion
3 major credit bureaus
New York Stock Exchange (NYSE)
electronic banking
factors that affect a mortgage
33. Ability to convert to cash and maintain value
Tenant
tips for using credit wisely
debit card
liquidity
34. The total amount of an employee's earnings before deductions are taken out
fixed expenses
needs
collateral
gross pay
35. Protects depository institution accounts - incures commercial banks and savings and loan
electronic banking
factors that affect a mortgage
Federal Deposit Insurance Corporation (FDIC)
opportunity cost
36. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
short term debt
time value of money
factors that affect a mortgage
National Association of Securities Dealers Automated Quotations (NASDAQ)
37. Items you need to survive ex: food - water
diversification
3 major credit bureaus
needs
Kelley Blue Book
38. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
things that affect loans
compound interest
interest
reasons to invest in stocks
39. 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
reasons to invest in stocks
collection agency or debt collector
National Association of Securities Dealers Automated Quotations (NASDAQ)
tips for using credit wisely
40. The money an investor receives above and beyond the sum of money initially invested
factors that affect a mortgage
CPI's relation to inflation
Dow Jones
return
41. The money left to spend or save after taxes have been paid
time value of money
3 major credit bureaus
disposable income
net pay
42. Spreading out investments to reduce risk
diversification
time value of money
gross pay
electronic banking
43. Set costs that must be paid such as rent - insurance - and car payments
fixed expenses
net pay
Securities and Exchange Commission (SEC)
blue chip stocks
44. Formula used to calculate how many years it would take to double an investment
Annual percentage rate (APR)
collateral
Rule of 72
short term debt
45. Carefully planned - practical - flexible - written and accessible
fixed expenses
tips for a successful budget
simple interest
compound interest
46. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
budget
tax deferred
mutual funds (MF)
47. High-priced common stocks that have been strong - profitable stocks for a long period of time.
Rule of 72
Federal Reserve System (FED)
blue chip stocks
growth stocks
48. Expenses that change from month to month
needs
Annual percentage rate (APR)
co-signing a loan
variable expenses
49. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
interest
wants
certificate of deposit or CD
dividend
50. Agree to be responsible for loan payments if the other person can't make them
co-signing a loan
3 major credit bureaus
certificate of deposit or CD
factors that affect a mortgage