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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. Allows pay back of debt with more time - court oversees repayment of plan
reasons not to invest in stocks
blue chip stocks
things that affect loans
chapter 13
2. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
Federal Deposit Insurance Corporation (FDIC)
variable expenses
how insurance is related to risk management
chapter 7
3. Carefully planned - practical - flexible - written and accessible
tips for a successful budget
Securities and Exchange Commission (SEC)
insurance
things that affect loans
4. Investment that pools money from many investors to invest in stocks - bonds and other securities
mutual funds (MF)
Annual percentage rate (APR)
CPI's relation to inflation
return
5. Source of information in determining a fair price for a vehicle - new or used
chapter 7
compound interest
financing an item
Kelley Blue Book
6. High-priced common stocks that have been strong - profitable stocks for a long period of time.
Annual percentage rate (APR)
variable expenses
debit card
blue chip stocks
7. Equifax - Experian - TransUnion
Pay Yourself First (PYF)
3 major credit bureaus
fixed expenses
variable expenses
8. To borrow money from a bank to purchase an item and pay for it over time
time value of money
bankruptcy
credit record
financing an item
9. 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.
interest can benefit you when...
tax deferred
growth stocks
Law of Supply and Demand
10. Expenses that change from month to month
Pay Yourself First (PYF)
reasons to invest in stocks
variable expenses
bankruptcy
11. Salary - wages - interest - campital gains - commission
tax deferred
Kelley Blue Book
factors that affect your income
Securities and Exchange Commission (SEC)
12. Interest paid on the principal alone (I=p x r x t)
interest
how insurance is related to risk management
risk
simple interest
13. The money left to spend or save after taxes have been paid
disposable income
discretionary income
chapter 13
interest can benefit you when...
14. Goal in which you plan to prepare for and reach in the distant future - over 5 years
dividend
long term goals
short term debt
Federal Open Market Committee (FOMC)
15. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
Kelley Blue Book
Dow Jones
supply
Securities and Exchange Commission (SEC)
16. Lenders must disclose all costs of credit
chapter 13
3 major credit bureaus
Truth in Lending Act
credit record
17. Debts due within the next year (ex: loans - credit cards)
short term debt
Federal Open Market Committee (FOMC)
Tenant
factors that affect your income
18. Enforces securities laws and regulates the securities industry
factors that affect your income
interest can be bad for you when....
certificate of deposit or CD
Securities and Exchange Commission (SEC)
19. Only responsible for the building and the property in the case of an event like fire - water damage
debit card
New York Stock Exchange (NYSE)
collection agency or debt collector
Landlord
20. 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
return
variable expenses
tips for using credit wisely
disposable income
21. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
Annual percentage rate (APR)
compound interest
New York Stock Exchange (NYSE)
22. Can be profitable - liquid
Securities and Exchange Commission (SEC)
reasons to invest in stocks
dividend
CPI's relation to inflation
23. The money an investor receives above and beyond the sum of money initially invested
return
blue chip stocks
Landlord
diversification
24. 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.
25. The desire of a good or service
demand
reasons not to invest in stocks
simple interest
things that affect loans
26. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
things that affect loans
interest can benefit you when...
compound interest
collateral
27. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
chapter 7
compound interest
budget
variable expenses
28. 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
long term goals
bankruptcy
supply
short term goals
29. Using computers to carry out transfers of money
reasons to invest in stocks
electronic banking
disposable income
net pay
30. The total amount of an employee's earnings before deductions are taken out
short term debt
gross pay
Kelley Blue Book
budget
31. A log of the financial habits of a person who buys on credit.
co-signing a loan
credit record
New York Stock Exchange (NYSE)
return
32. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
discretionary income
Landlord
Truth in Lending Act
collection agency or debt collector
33. The availability of a good or service
wants
short term goals
supply
diversification
34. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
short term debt
Dow Jones
Pay Yourself First (PYF)
wants
35. 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
interest
CPI's relation to inflation
growth stocks
New York Stock Exchange (NYSE)
36. You owe money (ex: credit card - loan)
interest can be bad for you when....
short term debt
needs
CPI's relation to inflation
37. Responsible for their own personal belongings in the case of an event like fire - water damage
CPI's relation to inflation
New York Stock Exchange (NYSE)
Tenant
Securities and Exchange Commission (SEC)
38. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
mutual funds (MF)
opportunity cost
co-signing a loan
emergency fund
39. The portion of corporate profits paid out to stockholders
Pay Yourself First (PYF)
reasons not to invest in stocks
collection agency or debt collector
dividend
40. Income risk - personal risk - liquidity risk - interest rate risk
types of risk
demand
collateral
things that affect loans
41. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
co-signing a loan
wants
mutual funds (MF)
Federal Open Market Committee (FOMC)
42. Risky
fixed expenses
reasons not to invest in stocks
mutual funds (MF)
Dow Jones
43. Pursues payments on debts owed by individuals or businesses
diversification
chapter 7
wants
collection agency or debt collector
44. Items you need to survive ex: food - water
insurance
Dow Jones
variable expenses
needs
45. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
long term goals
dividend
budget
certificate of deposit or CD
46. Formula used to calculate how many years it would take to double an investment
simple interest
compound interest
Rule of 72
blue chip stocks
47. Account to help you save money and earn a small amount of interest at the same time
factors that affect your income
electronic banking
savings account
tips for using credit wisely
48. A way to guarantee your financial protection against various risks
Kelley Blue Book
insurance
risk
Tenant
49. Interest rates - length of time to borrow money
things that affect loans
interest
short term goals
inflation
50. The possibility for loss on an investment
risk
simple interest
types of risk
return