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