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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. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
things that affect loans
certificate of deposit or CD
diversification
collection agency or debt collector
2. 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
supply
Annual percentage rate (APR)
New York Stock Exchange (NYSE)
budget
3. Ability to convert to cash and maintain value
gross pay
Dow Jones
Law of Supply and Demand
liquidity
4. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
things that affect loans
financing an item
Annual percentage rate (APR)
demand
5. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
blue chip stocks
credit record
collateral
wants
6. The value of buying one item over another
net pay
Law of Supply and Demand
chapter 7
opportunity cost
7. Stocks that pay low dividends - but are expected to grow
insurance
co-signing a loan
growth stocks
debit card
8. The increase in price of goods and services
tips for using credit wisely
interest can benefit you when...
National Association of Securities Dealers Automated Quotations (NASDAQ)
inflation
9. Can be profitable - liquid
reasons not to invest in stocks
reasons to invest in stocks
tips for a successful budget
diversification
10. 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.
short term goals
electronic banking
credit report
wants
11. Account to help you save money and earn a small amount of interest at the same time
risk
types of risk
Law of Supply and Demand
savings account
12. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
things that affect loans
compound interest
Law of Supply and Demand
interest can benefit you when...
13. Time - amount of money - rate of interest
Dow Jones
gross pay
reasons not to invest in stocks
time value of money
14. Spreading out investments to reduce risk
diversification
time value of money
tips for using credit wisely
inflation
15. 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.
National Association of Securities Dealers Automated Quotations (NASDAQ)
Law of Supply and Demand
Dow Jones
bankruptcy
16. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
how insurance is related to risk management
Landlord
Federal Reserve System (FED)
factors that affect a mortgage
17. High-priced common stocks that have been strong - profitable stocks for a long period of time.
blue chip stocks
collateral
net pay
factors that affect your income
18. Only responsible for the building and the property in the case of an event like fire - water damage
budget
factors that affect a mortgage
liquidity
Landlord
19. The total earnings paid to an employee after payroll taxes and other deductions
certificate of deposit or CD
emergency fund
net pay
co-signing a loan
20. The total amount of an employee's earnings before deductions are taken out
Kelley Blue Book
gross pay
interest
certificate of deposit or CD
21. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
things that affect loans
collection agency or debt collector
tax deferred
diversification
22. 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.
23. Allows pay back of debt with more time - court oversees repayment of plan
Landlord
short term goals
credit report
chapter 13
24. Equifax - Experian - TransUnion
CPI's relation to inflation
Tenant
gross pay
3 major credit bureaus
25. Formula used to calculate how many years it would take to double an investment
opportunity cost
dividend
short term debt
Rule of 72
26. Items for enjoyment ex: eating out - entertainment - luxury items
wants
time value of money
Federal Deposit Insurance Corporation (FDIC)
co-signing a loan
27. Debts due within the next year (ex: loans - credit cards)
tips for using credit wisely
certificate of deposit or CD
3 major credit bureaus
short term debt
28. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
discretionary income
Securities and Exchange Commission (SEC)
gross pay
Federal Open Market Committee (FOMC)
29. Responsible for their own personal belongings in the case of an event like fire - water damage
electronic banking
bankruptcy
Tenant
long term goals
30. Pursues payments on debts owed by individuals or businesses
bankruptcy
simple interest
growth stocks
collection agency or debt collector
31. You are being paid for it (ex: investment)
Federal Reserve System (FED)
insurance
inflation
interest can benefit you when...
32. Investment that pools money from many investors to invest in stocks - bonds and other securities
financing an item
emergency fund
long term goals
mutual funds (MF)
33. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
3 major credit bureaus
Pay Yourself First (PYF)
discretionary income
CPI's relation to inflation
34. Set costs that must be paid such as rent - insurance - and car payments
tips for a successful budget
fixed expenses
chapter 7
types of risk
35. Carefully planned - practical - flexible - written and accessible
tips for a successful budget
credit record
wants
types of risk
36. Items you need to survive ex: food - water
long term goals
Federal Reserve System (FED)
needs
CPI's relation to inflation
37. The money left to spend or save after taxes have been paid
short term debt
disposable income
3 major credit bureaus
liquidity
38. Interest paid on the principal alone (I=p x r x t)
interest
return
Truth in Lending Act
simple interest
39. A fixed charge for borrowing money
compound interest
interest
CPI's relation to inflation
tips for a successful budget
40. You owe money (ex: credit card - loan)
interest can be bad for you when....
interest can benefit you when...
mutual funds (MF)
chapter 7
41. Interest rates - length of time to borrow money
tax deferred
savings account
things that affect loans
blue chip stocks
42. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
variable expenses
Federal Open Market Committee (FOMC)
emergency fund
risk
43. Enforces securities laws and regulates the securities industry
collateral
Securities and Exchange Commission (SEC)
blue chip stocks
variable expenses
44. A way to guarantee your financial protection against various risks
insurance
return
emergency fund
financing an item
45. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
net pay
Dow Jones
supply
demand
46. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
credit report
long term goals
Federal Open Market Committee (FOMC)
emergency fund
47. Agree to be responsible for loan payments if the other person can't make them
co-signing a loan
wants
tips for a successful budget
mutual funds (MF)
48. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
collateral
National Association of Securities Dealers Automated Quotations (NASDAQ)
Federal Open Market Committee (FOMC)
blue chip stocks
49. Salary - wages - interest - campital gains - commission
needs
factors that affect your income
insurance
budget
50. The desire of a good or service
needs
tips for using credit wisely
Tenant
demand