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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. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
inflation
types of risk
credit report
compound interest
2. High-priced common stocks that have been strong - profitable stocks for a long period of time.
CPI's relation to inflation
Federal Open Market Committee (FOMC)
credit report
blue chip stocks
3. Debts due within the next year (ex: loans - credit cards)
variable expenses
short term debt
factors that affect a mortgage
budget
4. Goal in which you plan to prepare for and reach in the distant future - over 5 years
factors that affect your income
long term goals
financing an item
things that affect loans
5. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
co-signing a loan
return
National Association of Securities Dealers Automated Quotations (NASDAQ)
things that affect loans
6. Time - amount of money - rate of interest
time value of money
credit report
dividend
Law of Supply and Demand
7. 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
fixed expenses
debit card
co-signing a loan
opportunity cost
8. Enforces securities laws and regulates the securities industry
blue chip stocks
Securities and Exchange Commission (SEC)
budget
factors that affect a mortgage
9. The possibility for loss on an investment
growth stocks
things that affect loans
certificate of deposit or CD
risk
10. 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.
interest can be bad for you when....
demand
gross pay
Law of Supply and Demand
11. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
interest can benefit you when...
return
factors that affect a mortgage
time value of money
12. Carefully planned - practical - flexible - written and accessible
blue chip stocks
Federal Reserve System (FED)
tips for a successful budget
3 major credit bureaus
13. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
wants
Dow Jones
Federal Deposit Insurance Corporation (FDIC)
Pay Yourself First (PYF)
14. Responsible for their own personal belongings in the case of an event like fire - water damage
Tenant
financing an item
Securities and Exchange Commission (SEC)
tax deferred
15. Agree to be responsible for loan payments if the other person can't make them
tips for a successful budget
savings account
co-signing a loan
interest
16. The total amount of an employee's earnings before deductions are taken out
demand
time value of money
interest
gross pay
17. Interest paid on the principal alone (I=p x r x t)
simple interest
supply
reasons to invest in stocks
diversification
18. Stocks that pay low dividends - but are expected to grow
chapter 13
opportunity cost
growth stocks
return
19. The availability of a good or service
bankruptcy
supply
reasons not to invest in stocks
chapter 7
20. 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.
liquidity
credit report
time value of money
tips for a successful budget
21. Spreading out investments to reduce risk
supply
diversification
insurance
compound interest
22. Items for enjoyment ex: eating out - entertainment - luxury items
supply
Truth in Lending Act
return
wants
23. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
risk
factors that affect a mortgage
chapter 7
collateral
24. Allows pay back of debt with more time - court oversees repayment of plan
chapter 13
collection agency or debt collector
tips for a successful budget
Dow Jones
25. Can be profitable - liquid
financing an item
reasons to invest in stocks
Tenant
diversification
26. Equifax - Experian - TransUnion
debit card
time value of money
3 major credit bureaus
credit record
27. 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.
28. Lenders must disclose all costs of credit
Dow Jones
Truth in Lending Act
Federal Deposit Insurance Corporation (FDIC)
electronic banking
29. You owe money (ex: credit card - loan)
interest can be bad for you when....
interest can benefit you when...
budget
interest
30. To borrow money from a bank to purchase an item and pay for it over time
Annual percentage rate (APR)
chapter 7
financing an item
simple interest
31. Interest rates - length of time to borrow money
things that affect loans
mutual funds (MF)
co-signing a loan
disposable income
32. Income risk - personal risk - liquidity risk - interest rate risk
Landlord
types of risk
simple interest
credit report
33. The increase in price of goods and services
tips for using credit wisely
time value of money
inflation
return
34. 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
simple interest
Federal Reserve System (FED)
reasons not to invest in stocks
35. A log of the financial habits of a person who buys on credit.
credit record
Federal Reserve System (FED)
types of risk
tax deferred
36. Account to help you save money and earn a small amount of interest at the same time
savings account
interest can benefit you when...
collateral
dividend
37. The total earnings paid to an employee after payroll taxes and other deductions
tax deferred
interest can be bad for you when....
variable expenses
net pay
38. Items you need to survive ex: food - water
liquidity
credit report
factors that affect a mortgage
needs
39. Ability to convert to cash and maintain value
tips for a successful budget
National Association of Securities Dealers Automated Quotations (NASDAQ)
interest
liquidity
40. The portion of corporate profits paid out to stockholders
liquidity
dividend
opportunity cost
net pay
41. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
Annual percentage rate (APR)
mutual funds (MF)
savings account
risk
42. Risky
wants
diversification
reasons not to invest in stocks
co-signing a loan
43. 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
tips for using credit wisely
New York Stock Exchange (NYSE)
supply
CPI's relation to inflation
44. A way to guarantee your financial protection against various risks
fixed expenses
Truth in Lending Act
insurance
interest can benefit you when...
45. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
gross pay
Dow Jones
liquidity
interest can be bad for you when....
46. The money left to spend or save after taxes have been paid
disposable income
Truth in Lending Act
interest
blue chip stocks
47. A fixed charge for borrowing money
risk
simple interest
reasons not to invest in stocks
interest
48. Protects you from the probability that injury - damage or loss will occur
risk
simple interest
collateral
how insurance is related to risk management
49. The money an investor receives above and beyond the sum of money initially invested
return
tips for a successful budget
mutual funds (MF)
Pay Yourself First (PYF)
50. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
bankruptcy
chapter 7
certificate of deposit or CD
collateral