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






2. 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.






3. The value of buying one item over another






4. 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






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






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






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






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






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






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






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






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






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






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






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






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






17. A fixed charge for borrowing money






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






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






20. Enforces securities laws and regulates the securities industry






21. 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






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






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






24. 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






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






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






27. Using computers to carry out transfers of money






28. Equifax - Experian - TransUnion






29. Spreading out investments to reduce risk






30. The money left to spend or save after taxes have been paid






31. Interest rates - length of time to borrow money






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






33. 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






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






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






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






37. Ability to convert to cash and maintain value






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






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






40. Lenders must disclose all costs of credit






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






42. Risky






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






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






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






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






47. 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.


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






49. The availability of a good or service






50. Can be profitable - liquid