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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. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
collateral
things that affect loans
risk
dividend
2. Ability to convert to cash and maintain value
Dow Jones
liquidity
interest
budget
3. Debts due within the next year (ex: loans - credit cards)
time value of money
simple interest
short term debt
discretionary income
4. The total earnings paid to an employee after payroll taxes and other deductions
net pay
financing an item
credit record
chapter 7
5. Responsible for their own personal belongings in the case of an event like fire - water damage
bankruptcy
simple interest
Tenant
things that affect loans
6. Interest rates - length of time to borrow money
growth stocks
co-signing a loan
things that affect loans
emergency fund
7. Risky
reasons not to invest in stocks
Federal Open Market Committee (FOMC)
how insurance is related to risk management
collection agency or debt collector
8. Carefully planned - practical - flexible - written and accessible
collateral
Kelley Blue Book
tips for a successful budget
short term goals
9. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
interest can benefit you when...
Pay Yourself First (PYF)
Rule of 72
3 major credit bureaus
10. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
risk
tips for using credit wisely
demand
discretionary income
11. Goal in which you plan to prepare for and reach in the distant future - over 5 years
interest can benefit you when...
insurance
long term goals
dividend
12. Expenses that change from month to month
variable expenses
savings account
New York Stock Exchange (NYSE)
chapter 13
13. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
Annual percentage rate (APR)
savings account
short term goals
certificate of deposit or CD
14. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
short term debt
supply
net pay
15. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
variable expenses
National Association of Securities Dealers Automated Quotations (NASDAQ)
factors that affect a mortgage
collateral
16. Only responsible for the building and the property in the case of an event like fire - water damage
Federal Open Market Committee (FOMC)
Landlord
CPI's relation to inflation
Federal Deposit Insurance Corporation (FDIC)
17. The total amount of an employee's earnings before deductions are taken out
Rule of 72
Tenant
gross pay
tips for a successful budget
18. 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
gross pay
reasons not to invest in stocks
debit card
emergency fund
19. Income risk - personal risk - liquidity risk - interest rate risk
debit card
types of risk
Dow Jones
things that affect loans
20. The money an investor receives above and beyond the sum of money initially invested
bankruptcy
disposable income
things that affect loans
return
21. A log of the financial habits of a person who buys on credit.
budget
credit record
Federal Open Market Committee (FOMC)
demand
22. The value of buying one item over another
collateral
opportunity cost
return
Federal Deposit Insurance Corporation (FDIC)
23. Account to help you save money and earn a small amount of interest at the same time
Securities and Exchange Commission (SEC)
Truth in Lending Act
savings account
tax deferred
24. Using computers to carry out transfers of money
opportunity cost
savings account
wants
electronic banking
25. Source of information in determining a fair price for a vehicle - new or used
Federal Open Market Committee (FOMC)
Kelley Blue Book
National Association of Securities Dealers Automated Quotations (NASDAQ)
short term goals
26. Enforces securities laws and regulates the securities industry
Securities and Exchange Commission (SEC)
Annual percentage rate (APR)
short term goals
net pay
27. High-priced common stocks that have been strong - profitable stocks for a long period of time.
tax deferred
blue chip stocks
financing an item
short term debt
28. A plan for managing your money for a given period of time
insurance
wants
collateral
budget
29. A way to guarantee your financial protection against various risks
insurance
how insurance is related to risk management
debit card
3 major credit bureaus
30. The availability of a good or service
Law of Supply and Demand
supply
debit card
needs
31. 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.
32. Can be profitable - liquid
emergency fund
reasons to invest in stocks
collection agency or debt collector
short term debt
33. 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.
return
Federal Reserve System (FED)
Law of Supply and Demand
Dow Jones
34. Protects depository institution accounts - incures commercial banks and savings and loan
chapter 13
co-signing a loan
credit record
Federal Deposit Insurance Corporation (FDIC)
35. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
reasons to invest in stocks
tax deferred
CPI's relation to inflation
fixed expenses
36. The portion of corporate profits paid out to stockholders
dividend
types of risk
certificate of deposit or CD
3 major credit bureaus
37. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
variable expenses
return
emergency fund
Securities and Exchange Commission (SEC)
38. The desire of a good or service
interest
long term goals
how insurance is related to risk management
demand
39. Pursues payments on debts owed by individuals or businesses
dividend
Dow Jones
Truth in Lending Act
collection agency or debt collector
40. The increase in price of goods and services
growth stocks
Tenant
factors that affect a mortgage
inflation
41. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
chapter 7
interest can be bad for you when....
disposable income
dividend
42. Time - amount of money - rate of interest
bankruptcy
Securities and Exchange Commission (SEC)
time value of money
reasons to invest in stocks
43. 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
New York Stock Exchange (NYSE)
things that affect loans
electronic banking
dividend
44. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
Annual percentage rate (APR)
fixed expenses
factors that affect your income
collection agency or debt collector
45. Items you need to survive ex: food - water
short term goals
needs
liquidity
National Association of Securities Dealers Automated Quotations (NASDAQ)
46. Investment that pools money from many investors to invest in stocks - bonds and other securities
mutual funds (MF)
diversification
CPI's relation to inflation
National Association of Securities Dealers Automated Quotations (NASDAQ)
47. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
Pay Yourself First (PYF)
Kelley Blue Book
emergency fund
Dow Jones
48. 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
tips for using credit wisely
debit card
Landlord
Truth in Lending Act
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
compound interest
time value of money
Securities and Exchange Commission (SEC)
bankruptcy
50. Items for enjoyment ex: eating out - entertainment - luxury items
Kelley Blue Book
tips for a successful budget
wants
diversification