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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. Income risk - personal risk - liquidity risk - interest rate risk
return
fixed expenses
chapter 7
types of risk
2. Stocks that pay low dividends - but are expected to grow
Federal Reserve System (FED)
tax deferred
growth stocks
simple interest
3. The increase in price of goods and services
savings account
Pay Yourself First (PYF)
inflation
credit record
4. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Reserve System (FED)
Federal Open Market Committee (FOMC)
New York Stock Exchange (NYSE)
collection agency or debt collector
5. 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
bankruptcy
opportunity cost
collateral
tax deferred
6. Spreading out investments to reduce risk
collection agency or debt collector
demand
diversification
New York Stock Exchange (NYSE)
7. 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.
Law of Supply and Demand
supply
electronic banking
Tenant
8. Debts due within the next year (ex: loans - credit cards)
Rule of 72
Securities and Exchange Commission (SEC)
Federal Reserve System (FED)
short term debt
9. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
credit record
chapter 13
discretionary income
interest can benefit you when...
10. The money left to spend or save after taxes have been paid
budget
collection agency or debt collector
bankruptcy
disposable income
11. Regulates banks - makes short term loans to banks - conducts monetary policy
electronic banking
Federal Reserve System (FED)
fixed expenses
tips for a successful budget
12. 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)
tax deferred
Truth in Lending Act
compound interest
13. Investment that pools money from many investors to invest in stocks - bonds and other securities
mutual funds (MF)
Truth in Lending Act
Pay Yourself First (PYF)
short term goals
14. The desire of a good or service
return
Dow Jones
demand
collateral
15. Allows pay back of debt with more time - court oversees repayment of plan
Federal Deposit Insurance Corporation (FDIC)
3 major credit bureaus
chapter 13
collection agency or debt collector
16. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
emergency fund
risk
collection agency or debt collector
chapter 7
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. To borrow money from a bank to purchase an item and pay for it over time
time value of money
3 major credit bureaus
financing an item
CPI's relation to inflation
19. Goal in which you plan to reach in the near future - one year or less
New York Stock Exchange (NYSE)
short term goals
CPI's relation to inflation
tips for using credit wisely
20. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
reasons not to invest in stocks
New York Stock Exchange (NYSE)
factors that affect a mortgage
credit record
21. You are being paid for it (ex: investment)
wants
Federal Deposit Insurance Corporation (FDIC)
opportunity cost
interest can benefit you when...
22. Carefully planned - practical - flexible - written and accessible
supply
Securities and Exchange Commission (SEC)
tips for a successful budget
certificate of deposit or CD
23. Account to help you save money and earn a small amount of interest at the same time
budget
savings account
emergency fund
collateral
24. A log of the financial habits of a person who buys on credit.
credit record
collection agency or debt collector
Truth in Lending Act
Rule of 72
25. Interest paid on the principal alone (I=p x r x t)
certificate of deposit or CD
simple interest
Federal Deposit Insurance Corporation (FDIC)
collection agency or debt collector
26. A plan for managing your money for a given period of time
wants
short term goals
savings account
budget
27. The total amount of an employee's earnings before deductions are taken out
reasons to invest in stocks
National Association of Securities Dealers Automated Quotations (NASDAQ)
net pay
gross pay
28. Pursues payments on debts owed by individuals or businesses
Law of Supply and Demand
credit report
fixed expenses
collection agency or debt collector
29. Ability to convert to cash and maintain value
diversification
liquidity
Tenant
supply
30. A fixed charge for borrowing money
Annual percentage rate (APR)
chapter 7
tax deferred
interest
31. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
Landlord
opportunity cost
Annual percentage rate (APR)
compound interest
32. 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
short term goals
debit card
short term debt
dividend
33. Interest rates - length of time to borrow money
bankruptcy
things that affect loans
how insurance is related to risk management
liquidity
34. High-priced common stocks that have been strong - profitable stocks for a long period of time.
supply
compound interest
blue chip stocks
return
35. Responsible for their own personal belongings in the case of an event like fire - water damage
simple interest
bankruptcy
Tenant
certificate of deposit or CD
36. Protects you from the probability that injury - damage or loss will occur
National Association of Securities Dealers Automated Quotations (NASDAQ)
Securities and Exchange Commission (SEC)
how insurance is related to risk management
types of risk
37. Agree to be responsible for loan payments if the other person can't make them
Truth in Lending Act
inflation
certificate of deposit or CD
co-signing a loan
38. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
certificate of deposit or CD
fixed expenses
collateral
Federal Deposit Insurance Corporation (FDIC)
39. You owe money (ex: credit card - loan)
interest can be bad for you when....
collateral
growth stocks
things that affect loans
40. Enforces securities laws and regulates the securities industry
Truth in Lending Act
New York Stock Exchange (NYSE)
Dow Jones
Securities and Exchange Commission (SEC)
41. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
chapter 13
collateral
inflation
budget
42. 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
simple interest
Law of Supply and Demand
tips for using credit wisely
savings account
43. The value of buying one item over another
Law of Supply and Demand
long term goals
disposable income
opportunity cost
44. The total earnings paid to an employee after payroll taxes and other deductions
diversification
Annual percentage rate (APR)
net pay
fixed expenses
45. Only responsible for the building and the property in the case of an event like fire - water damage
credit report
Securities and Exchange Commission (SEC)
Landlord
gross pay
46. Protects depository institution accounts - incures commercial banks and savings and loan
Federal Deposit Insurance Corporation (FDIC)
collateral
needs
financing an item
47. Time - amount of money - rate of interest
collateral
time value of money
things that affect loans
chapter 7
48. Source of information in determining a fair price for a vehicle - new or used
Kelley Blue Book
Law of Supply and Demand
reasons to invest in stocks
tax deferred
49. The availability of a good or service
supply
savings account
return
interest
50. Formula used to calculate how many years it would take to double an investment
Rule of 72
chapter 7
supply
Federal Open Market Committee (FOMC)