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






2. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default






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






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






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






6. Expenses that change from month to month






7. Pursues payments on debts owed by individuals or businesses






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






9. High-priced common stocks that have been strong - profitable stocks for a long period of time.






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






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






12. Time - amount of money - rate of interest






13. 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.






14. 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.


15. The increase in price of goods and services






16. The total earnings paid to an employee after payroll taxes and other deductions






17. Spreading out investments to reduce risk






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






19. The value of buying one item over another






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






21. Ability to convert to cash and maintain value






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






23. Using computers to carry out transfers of money






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






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






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






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






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






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






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






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






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






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






34. Lenders must disclose all costs of credit






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






36. The desire of a good or service






37. Set costs that must be paid such as rent - insurance - and car payments






38. 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.






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






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






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






42. Enforces securities laws and regulates the securities industry






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






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






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






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






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






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






49. A fixed charge for borrowing money






50. Protects depository institution accounts - incures commercial banks and savings and loan