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