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. Set costs that must be paid such as rent - insurance - and car payments






2. You owe money (ex: credit card - loan)






3. Interest rates - length of time to borrow money






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






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






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






7. The portion of corporate profits paid out to stockholders






8. A way to guarantee your financial protection against various risks






9. The increase in price of goods and services






10. Can be profitable - liquid






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






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






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






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






15. Lenders must disclose all costs of credit






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






17. Spreading out investments to reduce risk






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






19. 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






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






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






22. Enforces securities laws and regulates the securities industry






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






24. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.






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






27. 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






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






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






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






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






32. The desire of a good or service






33. The money left to spend or save after taxes have been paid






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






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






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






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






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






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






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






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






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






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






44. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property






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






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






47. 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.






48. Using computers to carry out transfers of money






49. A fixed charge for borrowing money






50. The value of buying one item over another