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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 paid on the principal alone (I=p x r x t)
credit record
simple interest
reasons not to invest in stocks
supply
2. You owe money (ex: credit card - loan)
interest can be bad for you when....
types of risk
collateral
blue chip stocks
3. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
Pay Yourself First (PYF)
Truth in Lending Act
simple interest
liquidity
4. The availability of a good or service
discretionary income
types of risk
supply
Annual percentage rate (APR)
5. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
collateral
interest can be bad for you when....
opportunity cost
disposable income
6. Set costs that must be paid such as rent - insurance - and car payments
Pay Yourself First (PYF)
fixed expenses
how insurance is related to risk management
variable expenses
7. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
credit record
simple interest
certificate of deposit or CD
long term goals
8. A plan for managing your money for a given period of time
wants
budget
collateral
CPI's relation to inflation
9. Pursues payments on debts owed by individuals or businesses
liquidity
collection agency or debt collector
compound interest
blue chip stocks
10. Goal in which you plan to prepare for and reach in the distant future - over 5 years
long term goals
Securities and Exchange Commission (SEC)
Landlord
fixed expenses
11. Account to help you save money and earn a small amount of interest at the same time
3 major credit bureaus
things that affect loans
savings account
discretionary income
12. 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
emergency fund
tips for using credit wisely
short term goals
insurance
13. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
National Association of Securities Dealers Automated Quotations (NASDAQ)
Federal Reserve System (FED)
collateral
Annual percentage rate (APR)
14. Stocks that pay low dividends - but are expected to grow
short term debt
dividend
Pay Yourself First (PYF)
growth stocks
15. The money an investor receives above and beyond the sum of money initially invested
return
discretionary income
net pay
credit report
16. The total earnings paid to an employee after payroll taxes and other deductions
Tenant
Annual percentage rate (APR)
net pay
Federal Reserve System (FED)
17. The increase in price of goods and services
Federal Deposit Insurance Corporation (FDIC)
interest can benefit you when...
inflation
blue chip stocks
18. 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
Securities and Exchange Commission (SEC)
dividend
New York Stock Exchange (NYSE)
long term goals
19. The value of buying one item over another
opportunity cost
factors that affect a mortgage
discretionary income
CPI's relation to inflation
20. 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.
Law of Supply and Demand
Kelley Blue Book
CPI's relation to inflation
Rule of 72
21. A way to guarantee your financial protection against various risks
certificate of deposit or CD
financing an item
variable expenses
insurance
22. Source of information in determining a fair price for a vehicle - new or used
Kelley Blue Book
return
National Association of Securities Dealers Automated Quotations (NASDAQ)
co-signing a loan
23. Income risk - personal risk - liquidity risk - interest rate risk
types of risk
credit report
gross pay
inflation
24. You are being paid for it (ex: investment)
interest can benefit you when...
Rule of 72
demand
tax deferred
25. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
collection agency or debt collector
bankruptcy
Annual percentage rate (APR)
New York Stock Exchange (NYSE)
26. Protects depository institution accounts - incures commercial banks and savings and loan
opportunity cost
Federal Deposit Insurance Corporation (FDIC)
types of risk
reasons not to invest in stocks
27. The total amount of an employee's earnings before deductions are taken out
bankruptcy
Federal Reserve System (FED)
gross pay
growth stocks
28. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
Tenant
things that affect loans
discretionary income
blue chip stocks
29. Ability to convert to cash and maintain value
short term debt
Law of Supply and Demand
liquidity
return
30. Carefully planned - practical - flexible - written and accessible
wants
net pay
tips for a successful budget
opportunity cost
31. To borrow money from a bank to purchase an item and pay for it over time
Rule of 72
financing an item
diversification
growth stocks
32. A log of the financial habits of a person who buys on credit.
simple interest
disposable income
interest can benefit you when...
credit record
33. Goal in which you plan to reach in the near future - one year or less
Federal Reserve System (FED)
short term goals
mutual funds (MF)
reasons to invest in stocks
34. Allows pay back of debt with more time - court oversees repayment of plan
Tenant
simple interest
chapter 13
short term debt
35. Salary - wages - interest - campital gains - commission
interest
tips for a successful budget
factors that affect your income
co-signing a loan
36. Expenses that change from month to month
variable expenses
chapter 7
Kelley Blue Book
return
37. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
factors that affect a mortgage
Federal Reserve System (FED)
Rule of 72
reasons not to invest in stocks
38. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
chapter 7
bankruptcy
short term goals
39. Risky
dividend
co-signing a loan
Truth in Lending Act
reasons not to invest in stocks
40. Enforces securities laws and regulates the securities industry
return
Securities and Exchange Commission (SEC)
things that affect loans
dividend
41. A fixed charge for borrowing money
budget
interest
dividend
supply
42. Protects you from the probability that injury - damage or loss will occur
electronic banking
Law of Supply and Demand
CPI's relation to inflation
how insurance is related to risk management
43. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
short term debt
factors that affect your income
Federal Open Market Committee (FOMC)
44. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
chapter 7
Rule of 72
collection agency or debt collector
Securities and Exchange Commission (SEC)
45. Formula used to calculate how many years it would take to double an investment
gross pay
demand
Rule of 72
risk
46. The money left to spend or save after taxes have been paid
how insurance is related to risk management
mutual funds (MF)
disposable income
liquidity
47. Lenders must disclose all costs of credit
Pay Yourself First (PYF)
interest
credit record
Truth in Lending Act
48. High-priced common stocks that have been strong - profitable stocks for a long period of time.
Dow Jones
blue chip stocks
Rule of 72
simple interest
49. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
credit report
tax deferred
disposable income
demand
50. Only responsible for the building and the property in the case of an event like fire - water damage
Landlord
mutual funds (MF)
credit report
factors that affect your income