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. 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.






2. Only responsible for the building and the property in the case of an event like fire - water damage






3. The money left to spend or save after taxes have been paid






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






5. Enforces securities laws and regulates the securities industry






6. 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.






7. Interest rates - length of time to borrow money






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






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






10. Risky






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






12. The portion of corporate profits paid out to stockholders






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






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






15. Source of information in determining a fair price for a vehicle - new or used






16. 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






17. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange






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






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






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






21. Expenses that change from month to month






22. Using computers to carry out transfers of money






23. Ability to convert to cash and maintain value






24. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account






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






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






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






28. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States






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






30. The possibility for loss on an investment






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






32. Goal in which you plan to prepare for and reach in the distant future - over 5 years






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






34. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage






35. Pursues payments on debts owed by individuals or businesses






36. Can be profitable - liquid






37. 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






38. 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.


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






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






41. 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






42. A fixed charge for borrowing money






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






44. The desire of a good or service






45. Time - amount of money - rate of interest






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






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






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






49. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange






50. The availability of a good or service