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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. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
things that affect loans
chapter 7
diversification
collection agency or debt collector
2. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
net pay
Securities and Exchange Commission (SEC)
Federal Open Market Committee (FOMC)
return
3. Goal in which you plan to reach in the near future - one year or less
interest can benefit you when...
short term goals
net pay
collateral
4. 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
Truth in Lending Act
collateral
liquidity
tips for using credit wisely
5. The total earnings paid to an employee after payroll taxes and other deductions
interest can benefit you when...
long term goals
National Association of Securities Dealers Automated Quotations (NASDAQ)
net pay
6. High-priced common stocks that have been strong - profitable stocks for a long period of time.
co-signing a loan
Kelley Blue Book
long term goals
blue chip stocks
7. A plan for managing your money for a given period of time
budget
chapter 7
demand
collateral
8. 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
bankruptcy
long term goals
disposable income
9. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
factors that affect a mortgage
diversification
Federal Reserve System (FED)
disposable income
10. Pursues payments on debts owed by individuals or businesses
collection agency or debt collector
Tenant
fixed expenses
factors that affect your income
11. Using computers to carry out transfers of money
interest can be bad for you when....
fixed expenses
interest
electronic banking
12. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
insurance
Annual percentage rate (APR)
tax deferred
demand
13. Interest rates - length of time to borrow money
things that affect loans
variable expenses
budget
Federal Deposit Insurance Corporation (FDIC)
14. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
emergency fund
debit card
Pay Yourself First (PYF)
return
15. Enforces securities laws and regulates the securities industry
interest
Securities and Exchange Commission (SEC)
time value of money
reasons to invest in stocks
16. Lenders must disclose all costs of credit
Truth in Lending Act
Rule of 72
disposable income
financing an item
17. 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.
insurance
interest can be bad for you when....
collateral
Law of Supply and Demand
18. Items you need to survive ex: food - water
Dow Jones
reasons not to invest in stocks
Annual percentage rate (APR)
needs
19. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
National Association of Securities Dealers Automated Quotations (NASDAQ)
diversification
credit report
time value of money
20. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
tips for a successful budget
blue chip stocks
short term goals
emergency fund
21. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
3 major credit bureaus
Federal Deposit Insurance Corporation (FDIC)
CPI's relation to inflation
certificate of deposit or CD
22. Allows pay back of debt with more time - court oversees repayment of plan
Federal Open Market Committee (FOMC)
things that affect loans
chapter 13
growth stocks
23. Debts due within the next year (ex: loans - credit cards)
debit card
short term debt
Federal Reserve System (FED)
factors that affect your income
24. 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
interest can benefit you when...
variable expenses
electronic banking
debit card
25. Protects you from the probability that injury - damage or loss will occur
emergency fund
supply
how insurance is related to risk management
co-signing a loan
26. The value of buying one item over another
bankruptcy
tips for a successful budget
opportunity cost
simple interest
27. 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
blue chip stocks
New York Stock Exchange (NYSE)
National Association of Securities Dealers Automated Quotations (NASDAQ)
interest can be bad for you when....
28. A way to guarantee your financial protection against various risks
things that affect loans
Tenant
insurance
New York Stock Exchange (NYSE)
29. Carefully planned - practical - flexible - written and accessible
Law of Supply and Demand
collection agency or debt collector
3 major credit bureaus
tips for a successful budget
30. The total amount of an employee's earnings before deductions are taken out
gross pay
Dow Jones
compound interest
things that affect loans
31. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
blue chip stocks
Annual percentage rate (APR)
simple interest
opportunity cost
32. Ability to convert to cash and maintain value
risk
liquidity
bankruptcy
short term debt
33. Interest paid on the principal alone (I=p x r x t)
Law of Supply and Demand
simple interest
credit report
types of risk
34. Expenses that change from month to month
collection agency or debt collector
variable expenses
interest
disposable income
35. 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.
diversification
tips for a successful budget
credit report
3 major credit bureaus
36. Account to help you save money and earn a small amount of interest at the same time
short term debt
demand
savings account
National Association of Securities Dealers Automated Quotations (NASDAQ)
37. Time - amount of money - rate of interest
tax deferred
gross pay
time value of money
diversification
38. Can be profitable - liquid
compound interest
how insurance is related to risk management
Federal Reserve System (FED)
reasons to invest in stocks
39. 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
variable expenses
debit card
time value of money
40. Formula used to calculate how many years it would take to double an investment
discretionary income
Rule of 72
variable expenses
inflation
41. You owe money (ex: credit card - loan)
interest can be bad for you when....
New York Stock Exchange (NYSE)
disposable income
short term goals
42. Income risk - personal risk - liquidity risk - interest rate risk
New York Stock Exchange (NYSE)
types of risk
interest
Annual percentage rate (APR)
43. Stocks that pay low dividends - but are expected to grow
demand
growth stocks
how insurance is related to risk management
wants
44. The money an investor receives above and beyond the sum of money initially invested
factors that affect your income
risk
New York Stock Exchange (NYSE)
return
45. The portion of corporate profits paid out to stockholders
dividend
Federal Open Market Committee (FOMC)
Rule of 72
credit record
46. Items for enjoyment ex: eating out - entertainment - luxury items
wants
demand
time value of money
short term debt
47. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
disposable income
reasons not to invest in stocks
short term goals
discretionary income
48. Goal in which you plan to prepare for and reach in the distant future - over 5 years
long term goals
discretionary income
tax deferred
Federal Open Market Committee (FOMC)
49. The increase in price of goods and services
short term debt
CPI's relation to inflation
inflation
credit record
50. 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.