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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. 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
supply
factors that affect a mortgage
Rule of 72
2. A plan for managing your money for a given period of time
short term goals
how insurance is related to risk management
budget
Rule of 72
3. Pursues payments on debts owed by individuals or businesses
discretionary income
Federal Open Market Committee (FOMC)
growth stocks
collection agency or debt collector
4. Lenders must disclose all costs of credit
Truth in Lending Act
time value of money
Law of Supply and Demand
reasons to invest in stocks
5. The increase in price of goods and services
factors that affect your income
inflation
tax deferred
collection agency or debt collector
6. Using computers to carry out transfers of money
interest can be bad for you when....
demand
long term goals
electronic banking
7. Set costs that must be paid such as rent - insurance - and car payments
fixed expenses
dividend
Annual percentage rate (APR)
Landlord
8. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
Dow Jones
Tenant
Truth in Lending Act
discretionary income
9. Interest rates - length of time to borrow money
opportunity cost
co-signing a loan
demand
things that affect loans
10. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
compound interest
financing an item
New York Stock Exchange (NYSE)
factors that affect a mortgage
11. 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
growth stocks
New York Stock Exchange (NYSE)
chapter 13
discretionary income
12. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
Federal Reserve System (FED)
Truth in Lending Act
factors that affect your income
13. A way to guarantee your financial protection against various risks
variable expenses
collateral
insurance
chapter 13
14. Regulates banks - makes short term loans to banks - conducts monetary policy
tips for using credit wisely
compound interest
Federal Reserve System (FED)
certificate of deposit or CD
15. The total earnings paid to an employee after payroll taxes and other deductions
long term goals
net pay
inflation
Federal Reserve System (FED)
16. Investment that pools money from many investors to invest in stocks - bonds and other securities
mutual funds (MF)
discretionary income
short term goals
tips for a successful budget
17. Protects depository institution accounts - incures commercial banks and savings and loan
Federal Deposit Insurance Corporation (FDIC)
Tenant
blue chip stocks
inflation
18. Interest paid on the principal alone (I=p x r x t)
simple interest
chapter 7
collection agency or debt collector
debit card
19. The availability of a good or service
reasons to invest in stocks
gross pay
supply
tips for using credit wisely
20. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
Securities and Exchange Commission (SEC)
emergency fund
net pay
types of risk
21. A fixed charge for borrowing money
Law of Supply and Demand
blue chip stocks
interest
emergency fund
22. 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.
risk
return
credit report
things that affect loans
23. 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 a mortgage
Tenant
3 major credit bureaus
Dow Jones
24. The portion of corporate profits paid out to stockholders
collateral
simple interest
factors that affect a mortgage
dividend
25. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
New York Stock Exchange (NYSE)
opportunity cost
demand
chapter 7
26. Only responsible for the building and the property in the case of an event like fire - water damage
things that affect loans
Landlord
long term goals
growth stocks
27. Equifax - Experian - TransUnion
co-signing a loan
National Association of Securities Dealers Automated Quotations (NASDAQ)
return
3 major credit bureaus
28. Formula used to calculate how many years it would take to double an investment
CPI's relation to inflation
factors that affect your income
Rule of 72
blue chip stocks
29. Income risk - personal risk - liquidity risk - interest rate risk
Dow Jones
credit report
types of risk
disposable income
30. Risky
Landlord
compound interest
reasons not to invest in stocks
wants
31. Allows pay back of debt with more time - court oversees repayment of plan
Rule of 72
short term goals
chapter 13
supply
32. Spreading out investments to reduce risk
tax deferred
things that affect loans
dividend
diversification
33. To borrow money from a bank to purchase an item and pay for it over time
collection agency or debt collector
financing an item
reasons to invest in stocks
Tenant
34. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
diversification
interest
how insurance is related to risk management
certificate of deposit or CD
35. High-priced common stocks that have been strong - profitable stocks for a long period of time.
National Association of Securities Dealers Automated Quotations (NASDAQ)
blue chip stocks
disposable income
how insurance is related to risk management
36. Time - amount of money - rate of interest
interest
how insurance is related to risk management
time value of money
reasons not to invest in stocks
37. Ability to convert to cash and maintain value
budget
chapter 7
liquidity
reasons not to invest in stocks
38. The desire of a good or service
Pay Yourself First (PYF)
demand
CPI's relation to inflation
things that affect loans
39. Agree to be responsible for loan payments if the other person can't make them
co-signing a loan
debit card
factors that affect a mortgage
interest
40. The possibility for loss on an investment
risk
opportunity cost
Dow Jones
CPI's relation to inflation
41. 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)
growth stocks
short term debt
Kelley Blue Book
42. You are being paid for it (ex: investment)
wants
interest can benefit you when...
opportunity cost
bankruptcy
43. 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
tips for using credit wisely
net pay
CPI's relation to inflation
factors that affect a mortgage
44. 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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45. The value of buying one item over another
opportunity cost
dividend
demand
Federal Deposit Insurance Corporation (FDIC)
46. Stocks that pay low dividends - but are expected to grow
CPI's relation to inflation
growth stocks
risk
factors that affect a mortgage
47. Source of information in determining a fair price for a vehicle - new or used
compound interest
net pay
Kelley Blue Book
credit record
48. Account to help you save money and earn a small amount of interest at the same time
savings account
diversification
debit card
blue chip stocks
49. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
return
mutual funds (MF)
interest can benefit you when...
National Association of Securities Dealers Automated Quotations (NASDAQ)
50. Items for enjoyment ex: eating out - entertainment - luxury items
Dow Jones
growth stocks
wants
Federal Deposit Insurance Corporation (FDIC)