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. 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






2. 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






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






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






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






6. Time - amount of money - rate of interest






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






8. 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.






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






10. Salary - wages - interest - campital gains - commission






11. The desire of a good or service






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






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






14. Can be profitable - liquid






15. Interest rates - length of time to borrow money






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






17. 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.






18. A way to guarantee your financial protection against various risks






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






20. The value of buying one item over another






21. Formula used to calculate how many years it would take to double an investment






22. Equifax - Experian - TransUnion






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






24. Protects depository institution accounts - incures commercial banks and savings and loan






25. 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






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






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






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






29. Using computers to carry out transfers of money






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






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






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






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






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






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






36. The total earnings paid to an employee after payroll taxes and other deductions






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






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






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






40. The availability of a good or service






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






42. Ability to convert to cash and maintain value






43. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.






44. Risky






45. Econoomy - interest rates - supply and demand of housing market - treasury bond rates






46. 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






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






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






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






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