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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. The money left to spend or save after taxes have been paid
disposable income
chapter 7
Landlord
tips for using credit wisely
2. Formula used to calculate how many years it would take to double an investment
budget
Kelley Blue Book
Rule of 72
short term debt
3. Account to help you save money and earn a small amount of interest at the same time
interest
savings account
disposable income
factors that affect a mortgage
4. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
certificate of deposit or CD
compound interest
interest can benefit you when...
return
5. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
chapter 7
Pay Yourself First (PYF)
things that affect loans
demand
6. You owe money (ex: credit card - loan)
Landlord
insurance
interest can be bad for you when....
credit report
7. The availability of a good or service
3 major credit bureaus
needs
supply
Kelley Blue Book
8. Ability to convert to cash and maintain value
financing an item
liquidity
certificate of deposit or CD
compound interest
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
things that affect loans
debit card
factors that affect your income
blue chip stocks
10. Debts due within the next year (ex: loans - credit cards)
collection agency or debt collector
interest
short term debt
collateral
11. Set costs that must be paid such as rent - insurance - and car payments
tax deferred
emergency fund
fixed expenses
Federal Open Market Committee (FOMC)
12. Responsible for their own personal belongings in the case of an event like fire - water damage
long term goals
Tenant
financing an item
tips for a successful budget
13. Lenders must disclose all costs of credit
short term debt
Dow Jones
fixed expenses
Truth in Lending Act
14. The increase in price of goods and services
collateral
debit card
chapter 7
inflation
15. Risky
variable expenses
reasons not to invest in stocks
growth stocks
short term debt
16. Source of information in determining a fair price for a vehicle - new or used
simple interest
Kelley Blue Book
collateral
wants
17. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
reasons not to invest in stocks
liquidity
collateral
reasons to invest in stocks
18. Goal in which you plan to reach in the near future - one year or less
short term goals
3 major credit bureaus
emergency fund
long term goals
19. Goal in which you plan to prepare for and reach in the distant future - over 5 years
long term goals
blue chip stocks
emergency fund
factors that affect a mortgage
20. Income risk - personal risk - liquidity risk - interest rate risk
types of risk
Federal Deposit Insurance Corporation (FDIC)
budget
risk
21. A log of the financial habits of a person who buys on credit.
Securities and Exchange Commission (SEC)
compound interest
opportunity cost
credit record
22. A way to guarantee your financial protection against various risks
insurance
electronic banking
opportunity cost
Federal Open Market Committee (FOMC)
23. Investment that pools money from many investors to invest in stocks - bonds and other securities
Federal Open Market Committee (FOMC)
Kelley Blue Book
mutual funds (MF)
short term goals
24. Equifax - Experian - TransUnion
reasons not to invest in stocks
short term debt
3 major credit bureaus
mutual funds (MF)
25. The value of buying one item over another
opportunity cost
collateral
demand
tax deferred
26. 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.
27. Items you need to survive ex: food - water
co-signing a loan
reasons to invest in stocks
Rule of 72
needs
28. Regulates banks - makes short term loans to banks - conducts monetary policy
types of risk
Truth in Lending Act
time value of money
Federal Reserve System (FED)
29. Interest paid on the principal alone (I=p x r x t)
dividend
net pay
simple interest
disposable income
30. You are being paid for it (ex: investment)
Tenant
Truth in Lending Act
interest can benefit you when...
demand
31. The total amount of an employee's earnings before deductions are taken out
gross pay
variable expenses
mutual funds (MF)
fixed expenses
32. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
liquidity
savings account
interest
Pay Yourself First (PYF)
33. The portion of corporate profits paid out to stockholders
electronic banking
financing an item
Law of Supply and Demand
dividend
34. Only responsible for the building and the property in the case of an event like fire - water damage
how insurance is related to risk management
bankruptcy
Landlord
Truth in Lending Act
35. The desire of a good or service
financing an item
factors that affect your income
demand
Kelley Blue Book
36. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
factors that affect a mortgage
compound interest
reasons not to invest in stocks
wants
37. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
Truth in Lending Act
chapter 7
bankruptcy
tax deferred
38. High-priced common stocks that have been strong - profitable stocks for a long period of time.
blue chip stocks
Kelley Blue Book
tax deferred
collateral
39. Spreading out investments to reduce risk
budget
liquidity
compound interest
diversification
40. 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.
credit report
simple interest
insurance
co-signing a loan
41. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
factors that affect a mortgage
liquidity
simple interest
return
42. Can be profitable - liquid
reasons to invest in stocks
mutual funds (MF)
blue chip stocks
tax deferred
43. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
short term goals
compound interest
emergency fund
Rule of 72
44. A fixed charge for borrowing money
Securities and Exchange Commission (SEC)
variable expenses
interest
how insurance is related to risk management
45. A plan for managing your money for a given period of time
budget
gross pay
National Association of Securities Dealers Automated Quotations (NASDAQ)
credit record
46. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
budget
National Association of Securities Dealers Automated Quotations (NASDAQ)
debit card
CPI's relation to inflation
47. Protects you from the probability that injury - damage or loss will occur
collateral
how insurance is related to risk management
wants
interest can be bad for you when....
48. The total earnings paid to an employee after payroll taxes and other deductions
diversification
net pay
budget
liquidity
49. Using computers to carry out transfers of money
electronic banking
dividend
interest
mutual funds (MF)
50. 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
co-signing a loan
reasons to invest in stocks
tips for a successful budget
New York Stock Exchange (NYSE)