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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. You owe money (ex: credit card - loan)
credit report
fixed expenses
interest can be bad for you when....
short term debt
2. Formula used to calculate how many years it would take to double an investment
insurance
simple interest
Federal Open Market Committee (FOMC)
Rule of 72
3. The desire of a good or service
discretionary income
demand
needs
Federal Open Market Committee (FOMC)
4. High-priced common stocks that have been strong - profitable stocks for a long period of time.
diversification
financing an item
co-signing a loan
blue chip stocks
5. A log of the financial habits of a person who buys on credit.
supply
co-signing a loan
credit record
Pay Yourself First (PYF)
6. 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.
credit report
liquidity
demand
short term debt
7. Salary - wages - interest - campital gains - commission
factors that affect your income
bankruptcy
interest can be bad for you when....
savings account
8. Equifax - Experian - TransUnion
net pay
time value of money
budget
3 major credit bureaus
9. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
collection agency or debt collector
types of risk
New York Stock Exchange (NYSE)
factors that affect a mortgage
10. Agree to be responsible for loan payments if the other person can't make them
Federal Open Market Committee (FOMC)
Annual percentage rate (APR)
co-signing a loan
New York Stock Exchange (NYSE)
11. Goal in which you plan to prepare for and reach in the distant future - over 5 years
types of risk
debit card
short term debt
long term goals
12. Enforces securities laws and regulates the securities industry
Federal Reserve System (FED)
co-signing a loan
Securities and Exchange Commission (SEC)
Tenant
13. Items you need to survive ex: food - water
net pay
reasons not to invest in stocks
needs
3 major credit bureaus
14. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
blue chip stocks
tax deferred
variable expenses
collection agency or debt collector
15. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
variable expenses
collection agency or debt collector
chapter 7
Dow Jones
16. Using computers to carry out transfers of money
wants
mutual funds (MF)
Kelley Blue Book
electronic banking
17. The increase in price of goods and services
collection agency or debt collector
factors that affect a mortgage
National Association of Securities Dealers Automated Quotations (NASDAQ)
inflation
18. Lenders must disclose all costs of credit
long term goals
short term goals
chapter 7
Truth in Lending Act
19. The total earnings paid to an employee after payroll taxes and other deductions
simple interest
net pay
inflation
dividend
20. Regulates banks - makes short term loans to banks - conducts monetary policy
financing an item
Federal Reserve System (FED)
interest can benefit you when...
opportunity cost
21. Only responsible for the building and the property in the case of an event like fire - water damage
reasons to invest in stocks
Landlord
variable expenses
types of risk
22. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
things that affect loans
how insurance is related to risk management
credit report
certificate of deposit or CD
23. Debts due within the next year (ex: loans - credit cards)
mutual funds (MF)
short term debt
wants
factors that affect your income
24. The total amount of an employee's earnings before deductions are taken out
bankruptcy
gross pay
New York Stock Exchange (NYSE)
emergency fund
25. 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
risk
supply
how insurance is related to risk management
bankruptcy
26. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
certificate of deposit or CD
financing an item
demand
compound interest
27. Risky
reasons not to invest in stocks
fixed expenses
credit record
chapter 13
28. To borrow money from a bank to purchase an item and pay for it over time
financing an item
risk
Federal Reserve System (FED)
Rule of 72
29. A way to guarantee your financial protection against various risks
interest can be bad for you when....
electronic banking
tax deferred
insurance
30. Pursues payments on debts owed by individuals or businesses
New York Stock Exchange (NYSE)
collection agency or debt collector
variable expenses
diversification
31. Set costs that must be paid such as rent - insurance - and car payments
Federal Reserve System (FED)
simple interest
liquidity
fixed expenses
32. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
emergency fund
certificate of deposit or CD
opportunity cost
net pay
33. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
long term goals
discretionary income
tax deferred
things that affect loans
34. Time - amount of money - rate of interest
certificate of deposit or CD
factors that affect a mortgage
time value of money
factors that affect your income
35. Account to help you save money and earn a small amount of interest at the same time
savings account
financing an item
interest can benefit you when...
chapter 7
36. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
inflation
3 major credit bureaus
collateral
interest can be bad for you when....
37. 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
needs
net pay
tips for using credit wisely
electronic banking
38. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
certificate of deposit or CD
Pay Yourself First (PYF)
dividend
collateral
39. Interest paid on the principal alone (I=p x r x t)
collection agency or debt collector
how insurance is related to risk management
simple interest
insurance
40. Protects you from the probability that injury - damage or loss will occur
chapter 13
how insurance is related to risk management
net pay
demand
41. The availability of a good or service
Federal Deposit Insurance Corporation (FDIC)
tips for using credit wisely
financing an item
supply
42. 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
Tenant
Pay Yourself First (PYF)
simple interest
debit card
43. The money an investor receives above and beyond the sum of money initially invested
compound interest
Federal Deposit Insurance Corporation (FDIC)
wants
return
44. Goal in which you plan to reach in the near future - one year or less
variable expenses
types of risk
financing an item
short term goals
45. The possibility for loss on an investment
short term debt
variable expenses
risk
credit record
46. A plan for managing your money for a given period of time
budget
Federal Open Market Committee (FOMC)
savings account
Rule of 72
47. Allows pay back of debt with more time - court oversees repayment of plan
chapter 13
reasons not to invest in stocks
net pay
Federal Deposit Insurance Corporation (FDIC)
48. Interest rates - length of time to borrow money
short term debt
Federal Open Market Committee (FOMC)
things that affect loans
long term goals
49. 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.
credit record
long term goals
Law of Supply and Demand
gross pay
50. Source of information in determining a fair price for a vehicle - new or used
fixed expenses
short term goals
Pay Yourself First (PYF)
Kelley Blue Book