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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. Lenders must disclose all costs of credit
short term goals
reasons to invest in stocks
Truth in Lending Act
variable expenses
2. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
3 major credit bureaus
budget
needs
factors that affect a mortgage
3. Risky
diversification
Kelley Blue Book
Federal Reserve System (FED)
reasons not to invest in stocks
4. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
Federal Reserve System (FED)
variable expenses
Pay Yourself First (PYF)
supply
5. 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
Rule of 72
variable expenses
disposable income
6. Allows pay back of debt with more time - court oversees repayment of plan
credit record
demand
chapter 13
dividend
7. Agree to be responsible for loan payments if the other person can't make them
co-signing a loan
tips for a successful budget
factors that affect a mortgage
things that affect loans
8. High-priced common stocks that have been strong - profitable stocks for a long period of time.
co-signing a loan
long term goals
financing an item
blue chip stocks
9. The total amount of an employee's earnings before deductions are taken out
gross pay
wants
dividend
demand
10. Items for enjoyment ex: eating out - entertainment - luxury items
wants
credit report
gross pay
Securities and Exchange Commission (SEC)
11. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
needs
Federal Open Market Committee (FOMC)
time value of money
simple interest
12. Protects you from the probability that injury - damage or loss will occur
Kelley Blue Book
how insurance is related to risk management
discretionary income
Pay Yourself First (PYF)
13. Carefully planned - practical - flexible - written and accessible
Kelley Blue Book
disposable income
tips for a successful budget
electronic banking
14. Time - amount of money - rate of interest
long term goals
time value of money
disposable income
gross pay
15. Goal in which you plan to prepare for and reach in the distant future - over 5 years
insurance
long term goals
Dow Jones
Federal Open Market Committee (FOMC)
16. The availability of a good or service
inflation
supply
risk
long term goals
17. Regulates banks - makes short term loans to banks - conducts monetary policy
return
financing an item
Rule of 72
Federal Reserve System (FED)
18. 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.
19. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
mutual funds (MF)
Law of Supply and Demand
diversification
tax deferred
20. Goal in which you plan to reach in the near future - one year or less
budget
short term goals
financing an item
Federal Reserve System (FED)
21. Enforces securities laws and regulates the securities industry
Securities and Exchange Commission (SEC)
tips for a successful budget
Annual percentage rate (APR)
opportunity cost
22. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
short term goals
discretionary income
Dow Jones
reasons to invest in stocks
23. A plan for managing your money for a given period of time
liquidity
short term debt
budget
tax deferred
24. Source of information in determining a fair price for a vehicle - new or used
Landlord
factors that affect a mortgage
Kelley Blue Book
Dow Jones
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
debit card
Annual percentage rate (APR)
blue chip stocks
Federal Reserve System (FED)
26. Ability to convert to cash and maintain value
liquidity
emergency fund
interest can be bad for you when....
insurance
27. Salary - wages - interest - campital gains - commission
disposable income
factors that affect your income
short term goals
interest can be bad for you when....
28. The total earnings paid to an employee after payroll taxes and other deductions
savings account
CPI's relation to inflation
factors that affect your income
net pay
29. Income risk - personal risk - liquidity risk - interest rate risk
Pay Yourself First (PYF)
types of risk
diversification
electronic banking
30. Investment that pools money from many investors to invest in stocks - bonds and other securities
Tenant
mutual funds (MF)
wants
tax deferred
31. The money an investor receives above and beyond the sum of money initially invested
variable expenses
return
Truth in Lending Act
dividend
32. 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
collateral
New York Stock Exchange (NYSE)
Federal Deposit Insurance Corporation (FDIC)
interest can be bad for you when....
33. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
Landlord
debit card
factors that affect your income
National Association of Securities Dealers Automated Quotations (NASDAQ)
34. Spreading out investments to reduce risk
diversification
Tenant
factors that affect a mortgage
Dow Jones
35. Debts due within the next year (ex: loans - credit cards)
Tenant
short term debt
CPI's relation to inflation
electronic banking
36. A way to guarantee your financial protection against various risks
financing an item
supply
tips for using credit wisely
insurance
37. The increase in price of goods and services
inflation
reasons not to invest in stocks
interest
tax deferred
38. 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
inflation
tips for using credit wisely
Rule of 72
savings account
39. Only responsible for the building and the property in the case of an event like fire - water damage
CPI's relation to inflation
Securities and Exchange Commission (SEC)
Landlord
National Association of Securities Dealers Automated Quotations (NASDAQ)
40. The desire of a good or service
types of risk
short term debt
diversification
demand
41. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
Pay Yourself First (PYF)
debit card
Federal Deposit Insurance Corporation (FDIC)
chapter 7
42. A fixed charge for borrowing money
interest
types of risk
credit report
CPI's relation to inflation
43. Set costs that must be paid such as rent - insurance - and car payments
needs
short term debt
fixed expenses
liquidity
44. Interest paid on the principal alone (I=p x r x t)
simple interest
short term goals
Tenant
chapter 7
45. The portion of corporate profits paid out to stockholders
emergency fund
dividend
interest can be bad for you when....
mutual funds (MF)
46. Formula used to calculate how many years it would take to double an investment
Rule of 72
National Association of Securities Dealers Automated Quotations (NASDAQ)
certificate of deposit or CD
chapter 13
47. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
supply
return
risk
collateral
48. You owe money (ex: credit card - loan)
Pay Yourself First (PYF)
things that affect loans
interest can benefit you when...
interest can be bad for you when....
49. Can be profitable - liquid
reasons to invest in stocks
credit report
Pay Yourself First (PYF)
CPI's relation to inflation
50. Expenses that change from month to month
variable expenses
Annual percentage rate (APR)
National Association of Securities Dealers Automated Quotations (NASDAQ)
blue chip stocks