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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. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
discretionary income
factors that affect a mortgage
diversification
electronic banking
2. Time - amount of money - rate of interest
short term debt
reasons not to invest in stocks
time value of money
insurance
3. Debts due within the next year (ex: loans - credit cards)
budget
credit report
liquidity
short term debt
4. Enforces securities laws and regulates the securities industry
Securities and Exchange Commission (SEC)
Kelley Blue Book
co-signing a loan
collateral
5. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
blue chip stocks
net pay
chapter 7
factors that affect a mortgage
6. Goal in which you plan to reach in the near future - one year or less
tips for a successful budget
short term goals
factors that affect a mortgage
co-signing a loan
7. The portion of corporate profits paid out to stockholders
supply
certificate of deposit or CD
dividend
tax deferred
8. Interest paid on the principal alone (I=p x r x t)
wants
things that affect loans
simple interest
Dow Jones
9. You owe money (ex: credit card - loan)
demand
interest can be bad for you when....
time value of money
risk
10. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
debit card
financing an item
diversification
11. You are being paid for it (ex: investment)
savings account
certificate of deposit or CD
wants
interest can benefit you when...
12. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
Law of Supply and Demand
Dow Jones
time value of money
Federal Reserve System (FED)
13. Expenses that change from month to month
interest
variable expenses
liquidity
diversification
14. The desire of a good or service
demand
CPI's relation to inflation
tips for a successful budget
National Association of Securities Dealers Automated Quotations (NASDAQ)
15. Carefully planned - practical - flexible - written and accessible
tips for a successful budget
chapter 7
factors that affect your income
tips for using credit wisely
16. A plan for managing your money for a given period of time
budget
long term goals
risk
types of risk
17. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
tax deferred
tips for a successful budget
compound interest
growth stocks
18. Responsible for their own personal belongings in the case of an event like fire - water damage
short term debt
Tenant
Dow Jones
growth stocks
19. To borrow money from a bank to purchase an item and pay for it over time
net pay
financing an item
dividend
National Association of Securities Dealers Automated Quotations (NASDAQ)
20. Interest rates - length of time to borrow money
inflation
discretionary income
debit card
things that affect loans
21. Account to help you save money and earn a small amount of interest at the same time
liquidity
Law of Supply and Demand
needs
savings account
22. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
Federal Open Market Committee (FOMC)
interest can benefit you when...
risk
National Association of Securities Dealers Automated Quotations (NASDAQ)
23. Pursues payments on debts owed by individuals or businesses
collection agency or debt collector
things that affect loans
co-signing a loan
interest
24. A log of the financial habits of a person who buys on credit.
tips for a successful budget
Rule of 72
credit record
co-signing a loan
25. The total earnings paid to an employee after payroll taxes and other deductions
net pay
blue chip stocks
compound interest
Securities and Exchange Commission (SEC)
26. Lenders must disclose all costs of credit
Federal Reserve System (FED)
Pay Yourself First (PYF)
short term debt
Truth in Lending Act
27. 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.
short term debt
compound interest
credit report
Federal Reserve System (FED)
28. Ability to convert to cash and maintain value
simple interest
interest
liquidity
savings account
29. The availability of a good or service
reasons to invest in stocks
Federal Open Market Committee (FOMC)
blue chip stocks
supply
30. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
wants
Securities and Exchange Commission (SEC)
gross pay
31. Agree to be responsible for loan payments if the other person can't make them
short term goals
Landlord
co-signing a loan
reasons to invest in stocks
32. The money an investor receives above and beyond the sum of money initially invested
return
tips for a successful budget
fixed expenses
Federal Deposit Insurance Corporation (FDIC)
33. The value of buying one item over another
financing an item
short term debt
opportunity cost
time value of money
34. Set costs that must be paid such as rent - insurance - and car payments
Tenant
short term debt
mutual funds (MF)
fixed expenses
35. Risky
inflation
reasons not to invest in stocks
Federal Reserve System (FED)
fixed expenses
36. 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
Law of Supply and Demand
debit card
supply
National Association of Securities Dealers Automated Quotations (NASDAQ)
37. 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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38. Protects you from the probability that injury - damage or loss will occur
bankruptcy
Annual percentage rate (APR)
how insurance is related to risk management
inflation
39. Salary - wages - interest - campital gains - commission
factors that affect your income
disposable income
Federal Deposit Insurance Corporation (FDIC)
growth stocks
40. Source of information in determining a fair price for a vehicle - new or used
factors that affect a mortgage
Federal Open Market Committee (FOMC)
collection agency or debt collector
Kelley Blue Book
41. A fixed charge for borrowing money
short term debt
simple interest
interest
emergency fund
42. Can be profitable - liquid
tips for using credit wisely
debit card
interest
reasons to invest in stocks
43. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
compound interest
diversification
interest can benefit you when...
44. Goal in which you plan to prepare for and reach in the distant future - over 5 years
supply
long term goals
bankruptcy
chapter 13
45. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
3 major credit bureaus
collateral
reasons to invest in stocks
tax deferred
46. 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
National Association of Securities Dealers Automated Quotations (NASDAQ)
Rule of 72
disposable income
New York Stock Exchange (NYSE)
47. 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)
fixed expenses
short term debt
blue chip stocks
48. Protects depository institution accounts - incures commercial banks and savings and loan
Federal Deposit Insurance Corporation (FDIC)
factors that affect a mortgage
liquidity
3 major credit bureaus
49. A way to guarantee your financial protection against various risks
emergency fund
blue chip stocks
credit record
insurance
50. Only responsible for the building and the property in the case of an event like fire - water damage
needs
dividend
Landlord
budget