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