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






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






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






4. 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.






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






6. 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






7. The value of buying one item over another






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






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






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






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






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






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






14. 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






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






16. Ability to convert to cash and maintain value






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






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






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






20. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States






21. The increase in price of goods and services






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






23. The availability of a good or service






24. Pursues payments on debts owed by individuals or businesses






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






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






27. The desire of a good or service






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






29. 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






30. Interest rates - length of time to borrow money






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






32. The portion of corporate profits paid out to stockholders






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






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






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






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






37. Risky






38. Time - amount of money - rate of interest






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






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






41. Expenses that change from month to month






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






43. High-priced common stocks that have been strong - profitable stocks for a long period of time.






44. Using computers to carry out transfers of money






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






46. Lenders must disclose all costs of credit






47. Spreading out investments to reduce risk






48. Set costs that must be paid such as rent - insurance - and car payments






49. 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






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