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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. 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.
2. Expenses that change from month to month
variable expenses
New York Stock Exchange (NYSE)
Truth in Lending Act
supply
3. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
Dow Jones
chapter 13
mutual funds (MF)
diversification
4. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
Kelley Blue Book
Truth in Lending Act
National Association of Securities Dealers Automated Quotations (NASDAQ)
long term goals
5. High-priced common stocks that have been strong - profitable stocks for a long period of time.
chapter 7
blue chip stocks
Landlord
Law of Supply and Demand
6. 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.
interest
co-signing a loan
credit report
opportunity cost
7. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
fixed expenses
wants
Pay Yourself First (PYF)
collateral
8. Stocks that pay low dividends - but are expected to grow
short term debt
credit report
growth stocks
supply
9. The value of buying one item over another
liquidity
certificate of deposit or CD
factors that affect your income
opportunity cost
10. Account to help you save money and earn a small amount of interest at the same time
savings account
Tenant
financing an item
long term goals
11. Only responsible for the building and the property in the case of an event like fire - water damage
Landlord
needs
financing an item
interest can benefit you when...
12. Allows pay back of debt with more time - court oversees repayment of plan
tips for a successful budget
chapter 13
budget
electronic banking
13. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
variable expenses
short term debt
factors that affect a mortgage
certificate of deposit or CD
14. Pursues payments on debts owed by individuals or businesses
interest
collection agency or debt collector
discretionary income
diversification
15. The availability of a good or service
3 major credit bureaus
reasons not to invest in stocks
supply
interest
16. Agree to be responsible for loan payments if the other person can't make them
opportunity cost
co-signing a loan
Dow Jones
Tenant
17. The total amount of an employee's earnings before deductions are taken out
things that affect loans
collateral
gross pay
disposable income
18. Investment that pools money from many investors to invest in stocks - bonds and other securities
tax deferred
collection agency or debt collector
mutual funds (MF)
growth stocks
19. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
chapter 13
National Association of Securities Dealers Automated Quotations (NASDAQ)
CPI's relation to inflation
20. Protects depository institution accounts - incures commercial banks and savings and loan
National Association of Securities Dealers Automated Quotations (NASDAQ)
Federal Deposit Insurance Corporation (FDIC)
variable expenses
Rule of 72
21. The desire of a good or service
demand
chapter 13
debit card
Federal Reserve System (FED)
22. You owe money (ex: credit card - loan)
budget
Law of Supply and Demand
interest can be bad for you when....
Federal Open Market Committee (FOMC)
23. The increase in price of goods and services
reasons to invest in stocks
short term goals
tips for using credit wisely
inflation
24. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
short term goals
Securities and Exchange Commission (SEC)
blue chip stocks
certificate of deposit or CD
25. A fixed charge for borrowing money
Law of Supply and Demand
factors that affect a mortgage
interest
return
26. Protects you from the probability that injury - damage or loss will occur
how insurance is related to risk management
certificate of deposit or CD
Federal Deposit Insurance Corporation (FDIC)
Pay Yourself First (PYF)
27. The possibility for loss on an investment
risk
compound interest
electronic banking
certificate of deposit or CD
28. A way to guarantee your financial protection against various risks
insurance
National Association of Securities Dealers Automated Quotations (NASDAQ)
bankruptcy
risk
29. Items you need to survive ex: food - water
3 major credit bureaus
needs
chapter 7
reasons to invest in stocks
30. Time - amount of money - rate of interest
Pay Yourself First (PYF)
chapter 7
time value of money
reasons not to invest in stocks
31. Items for enjoyment ex: eating out - entertainment - luxury items
3 major credit bureaus
wants
simple interest
long term goals
32. 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
collection agency or debt collector
New York Stock Exchange (NYSE)
Pay Yourself First (PYF)
tips for using credit wisely
33. A log of the financial habits of a person who buys on credit.
factors that affect a mortgage
fixed expenses
diversification
credit record
34. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
mutual funds (MF)
Securities and Exchange Commission (SEC)
how insurance is related to risk management
35. To borrow money from a bank to purchase an item and pay for it over time
Federal Open Market Committee (FOMC)
Federal Deposit Insurance Corporation (FDIC)
CPI's relation to inflation
financing an item
36. Interest paid on the principal alone (I=p x r x t)
needs
simple interest
opportunity cost
Truth in Lending Act
37. The total earnings paid to an employee after payroll taxes and other deductions
chapter 13
Federal Reserve System (FED)
net pay
tax deferred
38. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
Annual percentage rate (APR)
collateral
tips for a successful budget
Rule of 72
39. Income risk - personal risk - liquidity risk - interest rate risk
tips for using credit wisely
long term goals
types of risk
Annual percentage rate (APR)
40. Lenders must disclose all costs of credit
Truth in Lending Act
savings account
CPI's relation to inflation
collection agency or debt collector
41. The money an investor receives above and beyond the sum of money initially invested
budget
compound interest
return
Dow Jones
42. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
tax deferred
emergency fund
liquidity
long term goals
43. Spreading out investments to reduce risk
Federal Reserve System (FED)
demand
diversification
variable expenses
44. Ability to convert to cash and maintain value
liquidity
discretionary income
time value of money
Federal Reserve System (FED)
45. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
emergency fund
needs
supply
compound interest
46. You are being paid for it (ex: investment)
emergency fund
collateral
Tenant
interest can benefit you when...
47. 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
debit card
financing an item
tips for using credit wisely
tax deferred
48. The portion of corporate profits paid out to stockholders
electronic banking
inflation
Federal Reserve System (FED)
dividend
49. Can be profitable - liquid
credit record
return
reasons to invest in stocks
inflation
50. Responsible for their own personal belongings in the case of an event like fire - water damage
diversification
liquidity
Tenant
needs