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 way to guarantee your financial protection against various risks






2. Time - amount of money - rate of interest






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






4. Ability to convert to cash and maintain value






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






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






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






8. 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






9. Carefully planned - practical - flexible - written and accessible






10. Pursues payments on debts owed by individuals or businesses






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






12. Protects depository institution accounts - incures commercial banks and savings and loan






13. Source of information in determining a fair price for a vehicle - new or used






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






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






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






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






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






19. Items for enjoyment ex: eating out - entertainment - luxury items






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






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






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






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






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






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






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






27. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange






28. 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.






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






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






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






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






33. You owe money (ex: credit card - loan)






34. 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






35. 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.


36. Spreading out investments to reduce risk






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






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






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






40. Can be profitable - liquid






41. Enforces securities laws and regulates the securities industry






42. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property






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






44. The increase in price of goods and services






45. Equifax - Experian - TransUnion






46. Expenses that change from month to month






47. Lenders must disclose all costs of credit






48. Stocks that pay low dividends - but are expected to grow






49. The portion of corporate profits paid out to stockholders






50. 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.