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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. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
variable expenses
Annual percentage rate (APR)
Kelley Blue Book
discretionary income
2. High-priced common stocks that have been strong - profitable stocks for a long period of time.
co-signing a loan
debit card
Securities and Exchange Commission (SEC)
blue chip stocks
3. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
short term goals
collateral
Dow Jones
co-signing a loan
4. Items you need to survive ex: food - water
risk
reasons not to invest in stocks
bankruptcy
needs
5. Allows pay back of debt with more time - court oversees repayment of plan
short term debt
Truth in Lending Act
chapter 13
Kelley Blue Book
6. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
National Association of Securities Dealers Automated Quotations (NASDAQ)
disposable income
how insurance is related to risk management
fixed expenses
7. Enforces securities laws and regulates the securities industry
credit report
Securities and Exchange Commission (SEC)
credit record
compound interest
8. Responsible for their own personal belongings in the case of an event like fire - water damage
Federal Open Market Committee (FOMC)
fixed expenses
return
Tenant
9. The availability of a good or service
New York Stock Exchange (NYSE)
short term goals
supply
mutual funds (MF)
10. Interest paid on the principal alone (I=p x r x t)
reasons not to invest in stocks
diversification
simple interest
credit report
11. Can be profitable - liquid
credit report
inflation
interest can benefit you when...
reasons to invest in stocks
12. You are being paid for it (ex: investment)
dividend
interest can benefit you when...
credit report
chapter 13
13. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
demand
emergency fund
co-signing a loan
chapter 13
14. Goal in which you plan to reach in the near future - one year or less
long term goals
certificate of deposit or CD
short term goals
dividend
15. Source of information in determining a fair price for a vehicle - new or used
inflation
certificate of deposit or CD
Kelley Blue Book
Landlord
16. The total amount of an employee's earnings before deductions are taken out
time value of money
Federal Reserve System (FED)
gross pay
long term goals
17. Time - amount of money - rate of interest
debit card
time value of money
co-signing a loan
reasons to invest in stocks
18. Agree to be responsible for loan payments if the other person can't make them
chapter 13
return
inflation
co-signing a loan
19. Only responsible for the building and the property in the case of an event like fire - water damage
Landlord
factors that affect your income
long term goals
needs
20. Regulates banks - makes short term loans to banks - conducts monetary policy
factors that affect your income
Federal Reserve System (FED)
interest can benefit you when...
Tenant
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
simple interest
National Association of Securities Dealers Automated Quotations (NASDAQ)
chapter 7
New York Stock Exchange (NYSE)
22. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
interest
factors that affect a mortgage
Securities and Exchange Commission (SEC)
Federal Open Market Committee (FOMC)
23. A way to guarantee your financial protection against various risks
insurance
tips for using credit wisely
blue chip stocks
growth stocks
24. Formula used to calculate how many years it would take to double an investment
Rule of 72
demand
liquidity
Tenant
25. A plan for managing your money for a given period of time
things that affect loans
liquidity
short term goals
budget
26. Investment that pools money from many investors to invest in stocks - bonds and other securities
interest can be bad for you when....
mutual funds (MF)
net pay
interest
27. Goal in which you plan to prepare for and reach in the distant future - over 5 years
mutual funds (MF)
long term goals
interest can benefit you when...
certificate of deposit or CD
28. Items for enjoyment ex: eating out - entertainment - luxury items
chapter 7
National Association of Securities Dealers Automated Quotations (NASDAQ)
wants
needs
29. Income risk - personal risk - liquidity risk - interest rate risk
types of risk
emergency fund
National Association of Securities Dealers Automated Quotations (NASDAQ)
Pay Yourself First (PYF)
30. Protects you from the probability that injury - damage or loss will occur
compound interest
gross pay
how insurance is related to risk management
disposable income
31. Salary - wages - interest - campital gains - commission
factors that affect your income
compound interest
disposable income
emergency fund
32. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
Federal Deposit Insurance Corporation (FDIC)
things that affect loans
collection agency or debt collector
compound interest
33. 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.
34. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
chapter 7
Dow Jones
National Association of Securities Dealers Automated Quotations (NASDAQ)
discretionary income
35. The total earnings paid to an employee after payroll taxes and other deductions
interest can benefit you when...
short term debt
net pay
Securities and Exchange Commission (SEC)
36. Equifax - Experian - TransUnion
credit record
3 major credit bureaus
wants
risk
37. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
compound interest
liquidity
diversification
Pay Yourself First (PYF)
38. Risky
factors that affect a mortgage
types of risk
co-signing a loan
reasons not to invest in stocks
39. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
discretionary income
certificate of deposit or CD
return
Tenant
40. The increase in price of goods and services
inflation
tax deferred
Federal Reserve System (FED)
Rule of 72
41. Account to help you save money and earn a small amount of interest at the same time
savings account
interest can be bad for you when....
tips for a successful budget
Federal Open Market Committee (FOMC)
42. Expenses that change from month to month
short term goals
variable expenses
financing an item
liquidity
43. Spreading out investments to reduce risk
Federal Open Market Committee (FOMC)
fixed expenses
diversification
demand
44. Set costs that must be paid such as rent - insurance - and car payments
simple interest
types of risk
reasons not to invest in stocks
fixed expenses
45. Using computers to carry out transfers of money
electronic banking
mutual funds (MF)
gross pay
Kelley Blue Book
46. 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.
fixed expenses
bankruptcy
diversification
Law of Supply and Demand
47. Stocks that pay low dividends - but are expected to grow
growth stocks
discretionary income
bankruptcy
inflation
48. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
growth stocks
inflation
chapter 13
factors that affect a mortgage
49. 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
financing an item
discretionary income
3 major credit bureaus
50. To borrow money from a bank to purchase an item and pay for it over time
discretionary income
financing an item
savings account
liquidity