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






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






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






4. Using computers to carry out transfers of money






5. 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.






6. The increase in price of goods and services






7. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses






8. Equifax - Experian - TransUnion






9. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)






10. The value of buying one item over another






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






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






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






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






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






16. 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






17. Lenders must disclose all costs of credit






18. Debts due within the next year (ex: loans - credit cards)






19. Can be profitable - liquid






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






21. A plan for managing your money for a given period of time






22. Responsible for their own personal belongings in the case of an event like fire - water damage






23. 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






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






25. Interest rates - length of time to borrow money






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






27. 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






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






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






30. Spreading out investments to reduce risk






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






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






33. Risky






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






35. 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.






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






37. The possibility for loss on an investment






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






39. 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.


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






41. Pursues payments on debts owed by individuals or businesses






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






43. Time - amount of money - rate of interest






44. A fixed charge for borrowing money






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






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






47. Items for enjoyment ex: eating out - entertainment - luxury items






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






49. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account






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