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






2. 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






3. Using computers to carry out transfers of money






4. The portion of corporate profits paid out to stockholders






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






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






7. The availability of a good or service






8. The desire of a good or service






9. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange






10. Spreading out investments to reduce risk






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






12. Pursues payments on debts owed by individuals or businesses






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






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






15. Risky






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






17. 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.






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






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






20. Time - amount of money - rate of interest






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






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






23. Can be profitable - liquid






24. The increase in price of goods and services






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






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






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






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






29. Expenses that change from month to month






30. The money an investor receives above and beyond the sum of money initially invested






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






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






33. 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






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






35. 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.


36. 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.






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






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






39. Interest rates - length of time to borrow money






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






41. Enforces securities laws and regulates the securities industry






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






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






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






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






46. The possibility for loss on an investment






47. A fixed charge for borrowing money






48. 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






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






50. Ability to convert to cash and maintain value