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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. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
Dow Jones
growth stocks
return
Federal Reserve System (FED)
2. You owe money (ex: credit card - loan)
budget
short term debt
factors that affect your income
interest can be bad for you when....
3. High-priced common stocks that have been strong - profitable stocks for a long period of time.
credit record
blue chip stocks
long term goals
short term goals
4. 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
simple interest
bankruptcy
chapter 13
5. Responsible for their own personal belongings in the case of an event like fire - water damage
Tenant
tax deferred
things that affect loans
risk
6. Stocks that pay low dividends - but are expected to grow
fixed expenses
tax deferred
growth stocks
interest
7. Interest rates - length of time to borrow money
types of risk
risk
things that affect loans
factors that affect your income
8. A plan for managing your money for a given period of time
simple interest
insurance
emergency fund
budget
9. Set costs that must be paid such as rent - insurance - and car payments
types of risk
tax deferred
fixed expenses
net pay
10. Equifax - Experian - TransUnion
short term goals
supply
mutual funds (MF)
3 major credit bureaus
11. 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.
Securities and Exchange Commission (SEC)
blue chip stocks
interest can benefit you when...
Law of Supply and Demand
12. Ability to convert to cash and maintain value
Dow Jones
bankruptcy
Tenant
liquidity
13. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
Kelley Blue Book
types of risk
discretionary income
growth stocks
14. 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
financing an item
interest can benefit you when...
3 major credit bureaus
15. A fixed charge for borrowing money
credit record
tips for using credit wisely
National Association of Securities Dealers Automated Quotations (NASDAQ)
interest
16. A log of the financial habits of a person who buys on credit.
credit record
interest
Dow Jones
tips for a successful budget
17. Interest paid on the principal alone (I=p x r x t)
electronic banking
gross pay
simple interest
tips for a successful budget
18. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
demand
risk
return
compound interest
19. 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
liquidity
tips for using credit wisely
bankruptcy
certificate of deposit or CD
20. Using computers to carry out transfers of money
Securities and Exchange Commission (SEC)
chapter 7
electronic banking
factors that affect a mortgage
21. Agree to be responsible for loan payments if the other person can't make them
reasons to invest in stocks
co-signing a loan
certificate of deposit or CD
compound interest
22. Regulates banks - makes short term loans to banks - conducts monetary policy
needs
interest can be bad for you when....
Federal Reserve System (FED)
inflation
23. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
National Association of Securities Dealers Automated Quotations (NASDAQ)
return
wants
tax deferred
24. The possibility for loss on an investment
collection agency or debt collector
risk
short term goals
disposable income
25. The desire of a good or service
demand
Truth in Lending Act
Federal Open Market Committee (FOMC)
things that affect loans
26. A way to guarantee your financial protection against various risks
insurance
inflation
opportunity cost
growth stocks
27. Can be profitable - liquid
Federal Open Market Committee (FOMC)
blue chip stocks
reasons to invest in stocks
interest can be bad for you when....
28. Goal in which you plan to reach in the near future - one year or less
short term goals
tips for using credit wisely
needs
interest
29. Source of information in determining a fair price for a vehicle - new or used
liquidity
Kelley Blue Book
diversification
reasons to invest in stocks
30. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
certificate of deposit or CD
fixed expenses
dividend
factors that affect a mortgage
31. Account to help you save money and earn a small amount of interest at the same time
Federal Deposit Insurance Corporation (FDIC)
National Association of Securities Dealers Automated Quotations (NASDAQ)
savings account
Law of Supply and Demand
32. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
long term goals
emergency fund
opportunity cost
reasons to invest in stocks
33. Salary - wages - interest - campital gains - commission
supply
factors that affect your income
factors that affect a mortgage
Securities and Exchange Commission (SEC)
34. The money an investor receives above and beyond the sum of money initially invested
Truth in Lending Act
Securities and Exchange Commission (SEC)
return
gross pay
35. Spreading out investments to reduce risk
New York Stock Exchange (NYSE)
Tenant
debit card
diversification
36. Pursues payments on debts owed by individuals or businesses
Kelley Blue Book
collection agency or debt collector
inflation
interest
37. Lenders must disclose all costs of credit
interest can be bad for you when....
Truth in Lending Act
collection agency or debt collector
opportunity cost
38. The money left to spend or save after taxes have been paid
types of risk
disposable income
liquidity
Federal Deposit Insurance Corporation (FDIC)
39. 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
collection agency or debt collector
financing an item
demand
40. Risky
budget
Landlord
credit record
reasons not to invest in stocks
41. Time - amount of money - rate of interest
mutual funds (MF)
liquidity
compound interest
time value of money
42. The availability of a good or service
budget
tips for using credit wisely
collateral
supply
43. The portion of corporate profits paid out to stockholders
variable expenses
dividend
Landlord
risk
44. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
chapter 7
diversification
long term goals
Landlord
45. The total amount of an employee's earnings before deductions are taken out
chapter 7
gross pay
things that affect loans
emergency fund
46. Only responsible for the building and the property in the case of an event like fire - water damage
types of risk
collection agency or debt collector
Landlord
insurance
47. 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
credit report
Truth in Lending Act
New York Stock Exchange (NYSE)
risk
48. 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.
compound interest
credit report
Federal Reserve System (FED)
New York Stock Exchange (NYSE)
49. Enforces securities laws and regulates the securities industry
credit report
liquidity
Securities and Exchange Commission (SEC)
supply
50. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
Annual percentage rate (APR)
blue chip stocks
budget
certificate of deposit or CD