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. The increase in price of goods and services






2. Can be profitable - liquid






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






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






5. The value of buying one item over another






6. Spreading out investments to reduce risk






7. The possibility for loss on an investment






8. 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






9. Interest rates - length of time to borrow money






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






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






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






13. Expenses that change from month to month






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






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






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






17. Equifax - Experian - TransUnion






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






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






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






21. Lenders must disclose all costs of credit






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






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






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






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






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






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






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






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






30. Investment that pools money from many investors to invest in stocks - bonds and other securities






31. Enforces securities laws and regulates the securities industry






32. 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.


33. 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






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






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






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






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






38. Using computers to carry out transfers of money






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






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






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






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






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






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






45. The portion of corporate profits paid out to stockholders






46. The desire of a good or service






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






48. 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.






49. Time - amount of money - rate of interest






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