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






2. 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.






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






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






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






6. 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






7. The portion of corporate profits paid out to stockholders






8. Investment that pools money from many investors to invest in stocks - bonds and other securities






9. Regulates banks - makes short term loans to banks - conducts monetary policy






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






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






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






13. Using computers to carry out transfers of money






14. The increase in price of goods and services






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






16. The value of buying one item over another






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






18. 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






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






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






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






22. Spreading out investments to reduce risk






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






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






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






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






27. The desire of a good or service






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






29. Protects you from the probability that injury - damage or loss will occur






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






31. Allows pay back of debt with more time - court oversees repayment of plan






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






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






34. Can be profitable - liquid






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






36. 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.


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






38. Time - amount of money - rate of interest






39. Lenders must disclose all costs of credit






40. 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






41. The possibility for loss on an investment






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






43. The availability of a good or service






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






45. Expenses that change from month to month






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






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






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






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






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