Test your basic knowledge |

DSST Personal Finance 2

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. A log of the financial habits of a person who buys on credit.






2. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.






3. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage






4. Spreading out investments to reduce risk






5. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)






6. To borrow money from a bank to purchase an item and pay for it over time






7. The value of buying one item over another






8. The increase in price of goods and services






9. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter






10. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)






11. Only responsible for the building and the property in the case of an event like fire - water damage






12. 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.






13. 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






14. Can be profitable - liquid






15. Responsible for their own personal belongings in the case of an event like fire - water damage






16. The money left to spend or save after taxes have been paid






17. The possibility for loss on an investment






18. Equifax - Experian - TransUnion






19. Agree to be responsible for loan payments if the other person can't make them






20. The money an investor receives above and beyond the sum of money initially invested






21. The total earnings paid to an employee after payroll taxes and other deductions






22. Interest paid on the principal alone (I=p x r x t)






23. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default






24. The availability of a good or service






25. Regulates banks - makes short term loans to banks - conducts monetary policy






26. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange






27. Income risk - personal risk - liquidity risk - interest rate risk






28. Formula used to calculate how many years it would take to double an investment






29. Account to help you save money and earn a small amount of interest at the same time






30. Allows pay back of debt with more time - court oversees repayment of plan






31. You are being paid for it (ex: investment)






32. Lenders must disclose all costs of credit






33. 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






34. A fixed charge for borrowing money






35. Items you need to survive ex: food - water






36. Goal in which you plan to reach in the near future - one year or less






37. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses






38. Salary - wages - interest - campital gains - commission






39. A plan for managing your money for a given period of time






40. The desire of a good or service






41. Econoomy - interest rates - supply and demand of housing market - treasury bond rates






42. Debts due within the next year (ex: loans - credit cards)






43. Goal in which you plan to prepare for and reach in the distant future - over 5 years






44. Investment that pools money from many investors to invest in stocks - bonds and other securities






45. The total amount of an employee's earnings before deductions are taken out






46. Expenses that change from month to month






47. 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






48. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account






49. Interest rates - length of time to borrow money






50. Protects you from the probability that injury - damage or loss will occur