SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Pursues payments on debts owed by individuals or businesses
reasons not to invest in stocks
Securities and Exchange Commission (SEC)
collection agency or debt collector
gross pay
2. High-priced common stocks that have been strong - profitable stocks for a long period of time.
wants
blue chip stocks
Dow Jones
reasons to invest in stocks
3. 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)
co-signing a loan
collateral
insurance
4. Ability to convert to cash and maintain value
chapter 7
New York Stock Exchange (NYSE)
factors that affect your income
liquidity
5. Expenses that change from month to month
budget
Dow Jones
variable expenses
short term goals
6. The portion of corporate profits paid out to stockholders
Kelley Blue Book
risk
dividend
liquidity
7. Goal in which you plan to reach in the near future - one year or less
short term goals
credit record
Kelley Blue Book
Law of Supply and Demand
8. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
opportunity cost
Landlord
reasons not to invest in stocks
Dow Jones
9. 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
electronic banking
debit card
inflation
New York Stock Exchange (NYSE)
10. The desire of a good or service
reasons not to invest in stocks
things that affect loans
Rule of 72
demand
11. The total amount of an employee's earnings before deductions are taken out
interest
credit record
Tenant
gross pay
12. The value of buying one item over another
opportunity cost
insurance
return
chapter 13
13. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
Kelley Blue Book
electronic banking
financing an item
chapter 7
14. Items for enjoyment ex: eating out - entertainment - luxury items
reasons not to invest in stocks
growth stocks
wants
collateral
15. Only responsible for the building and the property in the case of an event like fire - water damage
Federal Deposit Insurance Corporation (FDIC)
factors that affect a mortgage
budget
Landlord
16. A fixed charge for borrowing money
Annual percentage rate (APR)
interest
chapter 7
variable expenses
17. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
mutual funds (MF)
credit report
Pay Yourself First (PYF)
18. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
discretionary income
long term goals
tips for a successful budget
compound interest
19. You owe money (ex: credit card - loan)
interest can be bad for you when....
Landlord
tips for a successful budget
Dow Jones
20. The possibility for loss on an investment
debit card
Tenant
needs
risk
21. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
New York Stock Exchange (NYSE)
bankruptcy
Annual percentage rate (APR)
return
22. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
opportunity cost
Pay Yourself First (PYF)
Truth in Lending Act
factors that affect your income
23. Formula used to calculate how many years it would take to double an investment
Rule of 72
Truth in Lending Act
reasons not to invest in stocks
Federal Reserve System (FED)
24. A log of the financial habits of a person who buys on credit.
simple interest
savings account
opportunity cost
credit record
25. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
things that affect loans
Federal Open Market Committee (FOMC)
budget
electronic banking
26. Investment that pools money from many investors to invest in stocks - bonds and other securities
chapter 7
mutual funds (MF)
CPI's relation to inflation
supply
27. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
short term goals
time value of money
discretionary income
Pay Yourself First (PYF)
28. 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
Federal Reserve System (FED)
reasons not to invest in stocks
bankruptcy
Landlord
29. 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.
mutual funds (MF)
wants
credit report
demand
30. Time - amount of money - rate of interest
time value of money
Truth in Lending Act
inflation
reasons to invest in stocks
31. Equifax - Experian - TransUnion
tips for a successful budget
Kelley Blue Book
3 major credit bureaus
things that affect loans
32. Spreading out investments to reduce risk
CPI's relation to inflation
Annual percentage rate (APR)
supply
diversification
33. 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.
diversification
Kelley Blue Book
Law of Supply and Demand
Tenant
34. Enforces securities laws and regulates the securities industry
diversification
Securities and Exchange Commission (SEC)
tax deferred
savings account
35. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
Kelley Blue Book
3 major credit bureaus
interest
National Association of Securities Dealers Automated Quotations (NASDAQ)
36. Salary - wages - interest - campital gains - commission
Dow Jones
Landlord
interest can benefit you when...
factors that affect your income
37. Responsible for their own personal belongings in the case of an event like fire - water damage
Tenant
supply
3 major credit bureaus
types of risk
38. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
Kelley Blue Book
certificate of deposit or CD
3 major credit bureaus
electronic banking
39. Protects depository institution accounts - incures commercial banks and savings and loan
risk
Federal Deposit Insurance Corporation (FDIC)
supply
chapter 7
40. The money an investor receives above and beyond the sum of money initially invested
Federal Deposit Insurance Corporation (FDIC)
interest can benefit you when...
tax deferred
return
41. Income risk - personal risk - liquidity risk - interest rate risk
collateral
supply
types of risk
insurance
42. Source of information in determining a fair price for a vehicle - new or used
Kelley Blue Book
budget
short term goals
Federal Reserve System (FED)
43. Agree to be responsible for loan payments if the other person can't make them
co-signing a loan
chapter 7
electronic banking
return
44. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
collateral
supply
gross pay
risk
45. Risky
reasons not to invest in stocks
Landlord
debit card
supply
46. Account to help you save money and earn a small amount of interest at the same time
reasons to invest in stocks
liquidity
credit report
savings account
47. A plan for managing your money for a given period of time
variable expenses
factors that affect a mortgage
Securities and Exchange Commission (SEC)
budget
48. Lenders must disclose all costs of credit
collection agency or debt collector
Rule of 72
Law of Supply and Demand
Truth in Lending Act
49. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
interest can be bad for you when....
Rule of 72
tax deferred
disposable income
50. A way to guarantee your financial protection against various risks
electronic banking
Pay Yourself First (PYF)
fixed expenses
insurance