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






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






3. The portion of corporate profits paid out to stockholders






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






5. 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.






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






7. Ability to convert to cash and maintain value






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






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






10. Can be profitable - liquid






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






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






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






14. 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






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






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






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






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






19. Interest rates - length of time to borrow money






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






21. Enforces securities laws and regulates the securities industry






22. The value of buying one item over another






23. 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.






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






25. Using computers to carry out transfers of money






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






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






28. Expenses that change from month to month






29. 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.


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






31. 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






32. The availability of a good or service






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






34. The increase in price of goods and services






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






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






37. 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






38. The possibility for loss on an investment






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






40. A fixed charge for borrowing money






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






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






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






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






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






46. Equifax - Experian - TransUnion






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






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






49. 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






50. Lenders must disclose all costs of credit