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. A fixed charge for borrowing money






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






3. 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






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






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






6. The desire of a good or service






7. The value of buying one item over another






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






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






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






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






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






13. Expenses that change from month to month






14. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account






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






16. Risky






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






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






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






20. Equifax - Experian - TransUnion






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






22. 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






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






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






25. Using computers to carry out transfers of money






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






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






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






29. Source of information in determining a fair price for a vehicle - new or used






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






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






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






33. Time - amount of money - rate of interest






34. Ability to convert to cash and maintain value






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






36. Income risk - personal risk - liquidity risk - interest rate risk






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






38. Spreading out investments to reduce risk






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






40. The possibility for loss on an investment






41. 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.






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






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






44. Lenders must disclose all costs of credit






45. Interest rates - length of time to borrow money






46. Debts due within the next year (ex: loans - credit cards)






47. A plan for managing your money for a given period of time






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






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






50. 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.