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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. Account to help you save money and earn a small amount of interest at the same time
compound interest
savings account
things that affect loans
blue chip stocks
2. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
simple interest
chapter 7
interest can be bad for you when....
short term debt
3. Allows pay back of debt with more time - court oversees repayment of plan
liquidity
chapter 13
return
variable expenses
4. Responsible for their own personal belongings in the case of an event like fire - water damage
budget
supply
short term debt
Tenant
5. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
Law of Supply and Demand
National Association of Securities Dealers Automated Quotations (NASDAQ)
factors that affect a mortgage
disposable income
6. Time - amount of money - rate of interest
short term debt
opportunity cost
inflation
time value of money
7. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
discretionary income
certificate of deposit or CD
New York Stock Exchange (NYSE)
blue chip stocks
8. Protects depository institution accounts - incures commercial banks and savings and loan
New York Stock Exchange (NYSE)
Federal Deposit Insurance Corporation (FDIC)
chapter 13
credit report
9. To borrow money from a bank to purchase an item and pay for it over time
financing an item
things that affect loans
Annual percentage rate (APR)
mutual funds (MF)
10. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
inflation
Tenant
time value of money
Pay Yourself First (PYF)
11. The availability of a good or service
short term debt
needs
supply
Landlord
12. Stocks that pay low dividends - but are expected to grow
growth stocks
opportunity cost
reasons not to invest in stocks
Securities and Exchange Commission (SEC)
13. The portion of corporate profits paid out to stockholders
dividend
gross pay
Kelley Blue Book
risk
14. Investment that pools money from many investors to invest in stocks - bonds and other securities
CPI's relation to inflation
chapter 13
certificate of deposit or CD
mutual funds (MF)
15. Income risk - personal risk - liquidity risk - interest rate risk
budget
gross pay
types of risk
needs
16. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
demand
Federal Reserve System (FED)
Law of Supply and Demand
17. 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
wants
debit card
credit report
variable expenses
18. The desire of a good or service
savings account
demand
needs
disposable income
19. Expenses that change from month to month
CPI's relation to inflation
variable expenses
co-signing a loan
mutual funds (MF)
20. A fixed charge for borrowing money
interest
Federal Deposit Insurance Corporation (FDIC)
Dow Jones
how insurance is related to risk management
21. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
budget
Tenant
Federal Deposit Insurance Corporation (FDIC)
National Association of Securities Dealers Automated Quotations (NASDAQ)
22. Interest rates - length of time to borrow money
things that affect loans
return
liquidity
compound interest
23. You owe money (ex: credit card - loan)
interest can be bad for you when....
return
how insurance is related to risk management
risk
24. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
time value of money
demand
chapter 13
certificate of deposit or CD
25. 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.
26. 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.
things that affect loans
simple interest
Tenant
credit report
27. 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)
Tenant
mutual funds (MF)
chapter 7
28. A log of the financial habits of a person who buys on credit.
electronic banking
long term goals
Federal Reserve System (FED)
credit record
29. High-priced common stocks that have been strong - profitable stocks for a long period of time.
short term debt
liquidity
Annual percentage rate (APR)
blue chip stocks
30. Items you need to survive ex: food - water
risk
needs
long term goals
things that affect loans
31. Enforces securities laws and regulates the securities industry
credit record
Securities and Exchange Commission (SEC)
Kelley Blue Book
debit card
32. Ability to convert to cash and maintain value
types of risk
chapter 13
Kelley Blue Book
liquidity
33. A plan for managing your money for a given period of time
credit record
types of risk
budget
National Association of Securities Dealers Automated Quotations (NASDAQ)
34. 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
supply
short term debt
bankruptcy
opportunity cost
35. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
emergency fund
inflation
gross pay
how insurance is related to risk management
36. Goal in which you plan to prepare for and reach in the distant future - over 5 years
how insurance is related to risk management
3 major credit bureaus
short term debt
long term goals
37. Only responsible for the building and the property in the case of an event like fire - water damage
diversification
gross pay
Landlord
wants
38. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
supply
interest can benefit you when...
tax deferred
short term goals
39. The value of buying one item over another
opportunity cost
Landlord
dividend
collection agency or debt collector
40. Pursues payments on debts owed by individuals or businesses
collection agency or debt collector
Truth in Lending Act
types of risk
collateral
41. Interest paid on the principal alone (I=p x r x t)
simple interest
mutual funds (MF)
interest can benefit you when...
tax deferred
42. Can be profitable - liquid
electronic banking
Securities and Exchange Commission (SEC)
credit report
reasons to invest in stocks
43. Using computers to carry out transfers of money
net pay
electronic banking
budget
variable expenses
44. Goal in which you plan to reach in the near future - one year or less
short term goals
Tenant
Law of Supply and Demand
certificate of deposit or CD
45. Salary - wages - interest - campital gains - commission
mutual funds (MF)
credit record
budget
factors that affect your income
46. Lenders must disclose all costs of credit
Truth in Lending Act
return
factors that affect your income
electronic banking
47. 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.
debit card
interest
credit record
Law of Supply and Demand
48. The money an investor receives above and beyond the sum of money initially invested
collection agency or debt collector
tips for using credit wisely
Tenant
return
49. 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
risk
Federal Open Market Committee (FOMC)
Federal Reserve System (FED)
tips for using credit wisely
50. Equifax - Experian - TransUnion
certificate of deposit or CD
bankruptcy
3 major credit bureaus
types of risk