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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
Securities and Exchange Commission (SEC)
mutual funds (MF)
Landlord
factors that affect your income
2. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
fixed expenses
Federal Open Market Committee (FOMC)
Rule of 72
Securities and Exchange Commission (SEC)
3. Pursues payments on debts owed by individuals or businesses
risk
how insurance is related to risk management
collection agency or debt collector
Federal Open Market Committee (FOMC)
4. Allows pay back of debt with more time - court oversees repayment of plan
inflation
blue chip stocks
chapter 13
collateral
5. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
things that affect loans
Securities and Exchange Commission (SEC)
time value of money
Annual percentage rate (APR)
6. The availability of a good or service
opportunity cost
reasons not to invest in stocks
supply
growth stocks
7. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
certificate of deposit or CD
short term debt
inflation
Pay Yourself First (PYF)
8. Protects you from the probability that injury - damage or loss will occur
how insurance is related to risk management
National Association of Securities Dealers Automated Quotations (NASDAQ)
liquidity
reasons to invest in stocks
9. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
blue chip stocks
Securities and Exchange Commission (SEC)
risk
emergency fund
10. Items you need to survive ex: food - water
reasons to invest in stocks
needs
budget
supply
11. Source of information in determining a fair price for a vehicle - new or used
disposable income
inflation
needs
Kelley Blue Book
12. The total amount of an employee's earnings before deductions are taken out
CPI's relation to inflation
gross pay
return
how insurance is related to risk management
13. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
how insurance is related to risk management
return
needs
compound interest
14. 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
disposable income
simple interest
New York Stock Exchange (NYSE)
CPI's relation to inflation
15. The possibility for loss on an investment
factors that affect your income
variable expenses
risk
CPI's relation to inflation
16. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
tax deferred
diversification
blue chip stocks
inflation
17. Equifax - Experian - TransUnion
3 major credit bureaus
CPI's relation to inflation
budget
interest can be bad for you when....
18. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
savings account
Federal Deposit Insurance Corporation (FDIC)
factors that affect a mortgage
tips for a successful budget
19. Enforces securities laws and regulates the securities industry
collateral
chapter 13
factors that affect your income
Securities and Exchange Commission (SEC)
20. A fixed charge for borrowing money
CPI's relation to inflation
budget
tax deferred
interest
21. Can be profitable - liquid
debit card
dividend
reasons to invest in stocks
collateral
22. 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
Dow Jones
debit card
demand
tax deferred
23. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
Pay Yourself First (PYF)
Federal Reserve System (FED)
3 major credit bureaus
co-signing a loan
24. Stocks that pay low dividends - but are expected to grow
time value of money
financing an item
growth stocks
CPI's relation to inflation
25. The value of buying one item over another
Dow Jones
opportunity cost
reasons not to invest in stocks
demand
26. Risky
reasons not to invest in stocks
Law of Supply and Demand
Annual percentage rate (APR)
tips for using credit wisely
27. Time - amount of money - rate of interest
time value of money
savings account
electronic banking
reasons not to invest in stocks
28. 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.
29. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
debit card
interest can benefit you when...
simple interest
chapter 7
30. The increase in price of goods and services
financing an item
demand
inflation
compound interest
31. Carefully planned - practical - flexible - written and accessible
simple interest
compound interest
blue chip stocks
tips for a successful budget
32. Only responsible for the building and the property in the case of an event like fire - water damage
Federal Reserve System (FED)
tips for using credit wisely
fixed expenses
Landlord
33. Using computers to carry out transfers of money
tax deferred
simple interest
return
electronic banking
34. Ability to convert to cash and maintain value
net pay
things that affect loans
Landlord
liquidity
35. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
long term goals
financing an item
collateral
net pay
36. Regulates banks - makes short term loans to banks - conducts monetary policy
chapter 13
Landlord
Federal Reserve System (FED)
collection agency or debt collector
37. Account to help you save money and earn a small amount of interest at the same time
factors that affect your income
savings account
Federal Deposit Insurance Corporation (FDIC)
discretionary income
38. You owe money (ex: credit card - loan)
interest can be bad for you when....
insurance
Dow Jones
inflation
39. A way to guarantee your financial protection against various risks
tax deferred
disposable income
insurance
short term goals
40. A log of the financial habits of a person who buys on credit.
inflation
credit record
chapter 7
things that affect loans
41. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
tips for a successful budget
Dow Jones
Law of Supply and Demand
Landlord
42. You are being paid for it (ex: investment)
credit record
demand
interest can benefit you when...
tips for a successful budget
43. Agree to be responsible for loan payments if the other person can't make them
opportunity cost
growth stocks
net pay
co-signing a loan
44. Set costs that must be paid such as rent - insurance - and car payments
needs
Federal Open Market Committee (FOMC)
risk
fixed expenses
45. Income risk - personal risk - liquidity risk - interest rate risk
certificate of deposit or CD
types of risk
long term goals
tips for using credit wisely
46. Interest rates - length of time to borrow money
wants
things that affect loans
Annual percentage rate (APR)
interest
47. Goal in which you plan to prepare for and reach in the distant future - over 5 years
Law of Supply and Demand
compound interest
long term goals
credit report
48. 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
Federal Reserve System (FED)
chapter 13
dividend
bankruptcy
49. Debts due within the next year (ex: loans - credit cards)
needs
co-signing a loan
Kelley Blue Book
short term debt
50. 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
diversification
credit record
tips for using credit wisely
insurance