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