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