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