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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)
short term debt
Federal Deposit Insurance Corporation (FDIC)
opportunity cost
simple interest
2. The total amount of an employee's earnings before deductions are taken out
debit card
savings account
3 major credit bureaus
gross pay
3. You are being paid for it (ex: investment)
Tenant
New York Stock Exchange (NYSE)
interest can benefit you when...
gross pay
4. Time - amount of money - rate of interest
inflation
time value of money
electronic banking
demand
5. Carefully planned - practical - flexible - written and accessible
things that affect loans
budget
tips for a successful budget
Truth in Lending Act
6. Using computers to carry out transfers of money
disposable income
emergency fund
electronic banking
chapter 7
7. Ability to convert to cash and maintain value
gross pay
liquidity
reasons not to invest in stocks
supply
8. The possibility for loss on an investment
risk
short term goals
long term goals
reasons not to invest in stocks
9. Interest rates - length of time to borrow money
short term debt
tips for a successful budget
factors that affect your income
things that affect loans
10. Items for enjoyment ex: eating out - entertainment - luxury items
wants
supply
Kelley Blue Book
net pay
11. High-priced common stocks that have been strong - profitable stocks for a long period of time.
blue chip stocks
budget
variable expenses
liquidity
12. Salary - wages - interest - campital gains - commission
factors that affect your income
savings account
Federal Open Market Committee (FOMC)
certificate of deposit or CD
13. Formula used to calculate how many years it would take to double an investment
wants
New York Stock Exchange (NYSE)
interest can be bad for you when....
Rule of 72
14. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
Dow Jones
factors that affect a mortgage
diversification
discretionary income
15. Can be profitable - liquid
reasons to invest in stocks
interest can be bad for you when....
wants
3 major credit bureaus
16. Source of information in determining a fair price for a vehicle - new or used
interest
Kelley Blue Book
compound interest
how insurance is related to risk management
17. The money left to spend or save after taxes have been paid
Federal Deposit Insurance Corporation (FDIC)
disposable income
compound interest
credit record
18. Income risk - personal risk - liquidity risk - interest rate risk
needs
Tenant
short term debt
types of risk
19. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
wants
interest can be bad for you when....
Law of Supply and Demand
compound interest
20. Items you need to survive ex: food - water
tips for a successful budget
interest can be bad for you when....
interest
needs
21. Allows pay back of debt with more time - court oversees repayment of plan
types of risk
chapter 13
chapter 7
short term goals
22. Lenders must disclose all costs of credit
interest can be bad for you when....
Truth in Lending Act
bankruptcy
reasons to invest in stocks
23. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
risk
collateral
Dow Jones
Federal Open Market Committee (FOMC)
24. Goal in which you plan to reach in the near future - one year or less
insurance
opportunity cost
short term goals
Law of Supply and Demand
25. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
risk
variable expenses
short term goals
chapter 7
26. Agree to be responsible for loan payments if the other person can't make them
Landlord
co-signing a loan
Annual percentage rate (APR)
National Association of Securities Dealers Automated Quotations (NASDAQ)
27. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
mutual funds (MF)
debit card
compound interest
certificate of deposit or CD
28. Responsible for their own personal belongings in the case of an event like fire - water damage
chapter 7
co-signing a loan
Tenant
opportunity cost
29. Set costs that must be paid such as rent - insurance - and car payments
liquidity
fixed expenses
credit record
tax deferred
30. The desire of a good or service
demand
interest can benefit you when...
wants
short term debt
31. 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
supply
Pay Yourself First (PYF)
tips for using credit wisely
3 major credit bureaus
32. Protects depository institution accounts - incures commercial banks and savings and loan
financing an item
Federal Deposit Insurance Corporation (FDIC)
factors that affect your income
tips for a successful budget
33. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
interest
budget
blue chip stocks
emergency fund
34. Spreading out investments to reduce risk
diversification
needs
emergency fund
return
35. Debts due within the next year (ex: loans - credit cards)
risk
short term debt
mutual funds (MF)
New York Stock Exchange (NYSE)
36. The money an investor receives above and beyond the sum of money initially invested
interest can be bad for you when....
Law of Supply and Demand
return
Truth in Lending Act
37. 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.
tips for using credit wisely
factors that affect a mortgage
Landlord
Law of Supply and Demand
38. A fixed charge for borrowing money
Securities and Exchange Commission (SEC)
types of risk
Federal Reserve System (FED)
interest
39. To borrow money from a bank to purchase an item and pay for it over time
short term debt
tips for using credit wisely
financing an item
bankruptcy
40. Risky
CPI's relation to inflation
reasons not to invest in stocks
return
discretionary income
41. Goal in which you plan to prepare for and reach in the distant future - over 5 years
long term goals
Dow Jones
Federal Reserve System (FED)
Kelley Blue Book
42. Expenses that change from month to month
interest can be bad for you when....
variable expenses
Federal Deposit Insurance Corporation (FDIC)
short term debt
43. 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.
net pay
electronic banking
credit report
growth stocks
44. Protects you from the probability that injury - damage or loss will occur
time value of money
Dow Jones
how insurance is related to risk management
things that affect loans
45. 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
Truth in Lending Act
fixed expenses
chapter 7
46. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
Tenant
disposable income
interest can be bad for you when....
discretionary income
47. You owe money (ex: credit card - loan)
bankruptcy
interest can be bad for you when....
long term goals
savings account
48. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
how insurance is related to risk management
dividend
certificate of deposit or CD
49. 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.
50. The value of buying one item over another
bankruptcy
tips for a successful budget
compound interest
opportunity cost