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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. Pursues payments on debts owed by individuals or businesses
simple interest
collection agency or debt collector
emergency fund
dividend
2. The value of buying one item over another
Law of Supply and Demand
opportunity cost
reasons not to invest in stocks
Landlord
3. 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.
simple interest
credit report
electronic banking
growth stocks
4. A fixed charge for borrowing money
credit report
interest
debit card
long term goals
5. Items for enjoyment ex: eating out - entertainment - luxury items
interest can benefit you when...
mutual funds (MF)
wants
collection agency or debt collector
6. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
certificate of deposit or CD
fixed expenses
how insurance is related to risk management
tax deferred
7. Formula used to calculate how many years it would take to double an investment
Rule of 72
inflation
financing an item
variable expenses
8. Protects you from the probability that injury - damage or loss will occur
reasons not to invest in stocks
how insurance is related to risk management
Truth in Lending Act
debit card
9. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
reasons to invest in stocks
Annual percentage rate (APR)
debit card
simple interest
10. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
Federal Open Market Committee (FOMC)
short term goals
insurance
11. Salary - wages - interest - campital gains - commission
factors that affect a mortgage
dividend
factors that affect your income
risk
12. Responsible for their own personal belongings in the case of an event like fire - water damage
Tenant
demand
Federal Deposit Insurance Corporation (FDIC)
return
13. Source of information in determining a fair price for a vehicle - new or used
Dow Jones
Federal Reserve System (FED)
emergency fund
Kelley Blue Book
14. High-priced common stocks that have been strong - profitable stocks for a long period of time.
financing an item
Rule of 72
blue chip stocks
Federal Open Market Committee (FOMC)
15. Time - amount of money - rate of interest
bankruptcy
wants
Federal Reserve System (FED)
time value of money
16. The money an investor receives above and beyond the sum of money initially invested
CPI's relation to inflation
return
blue chip stocks
Federal Open Market Committee (FOMC)
17. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
time value of money
Pay Yourself First (PYF)
demand
short term goals
18. 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.
discretionary income
insurance
Law of Supply and Demand
reasons to invest in stocks
19. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
Federal Open Market Committee (FOMC)
National Association of Securities Dealers Automated Quotations (NASDAQ)
return
reasons to invest in stocks
20. The possibility for loss on an investment
risk
tips for using credit wisely
bankruptcy
insurance
21. Enforces securities laws and regulates the securities industry
Securities and Exchange Commission (SEC)
interest
collection agency or debt collector
debit card
22. The money left to spend or save after taxes have been paid
inflation
disposable income
growth stocks
opportunity cost
23. Agree to be responsible for loan payments if the other person can't make them
Landlord
Federal Deposit Insurance Corporation (FDIC)
co-signing a loan
mutual funds (MF)
24. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
tax deferred
Annual percentage rate (APR)
inflation
Tenant
25. Can be profitable - liquid
how insurance is related to risk management
reasons to invest in stocks
certificate of deposit or CD
tips for a successful budget
26. The availability of a good or service
National Association of Securities Dealers Automated Quotations (NASDAQ)
time value of money
insurance
supply
27. A way to guarantee your financial protection against various risks
net pay
CPI's relation to inflation
risk
insurance
28. Spreading out investments to reduce risk
tax deferred
discretionary income
diversification
blue chip stocks
29. Lenders must disclose all costs of credit
certificate of deposit or CD
growth stocks
Truth in Lending Act
discretionary income
30. Goal in which you plan to reach in the near future - one year or less
risk
Kelley Blue Book
short term goals
electronic banking
31. You are being paid for it (ex: investment)
types of risk
return
interest can benefit you when...
liquidity
32. Set costs that must be paid such as rent - insurance - and car payments
fixed expenses
Pay Yourself First (PYF)
reasons not to invest in stocks
diversification
33. Debts due within the next year (ex: loans - credit cards)
short term debt
reasons to invest in stocks
Landlord
dividend
34. Goal in which you plan to prepare for and reach in the distant future - over 5 years
variable expenses
tax deferred
electronic banking
long term goals
35. The total earnings paid to an employee after payroll taxes and other deductions
return
liquidity
savings account
net pay
36. Only responsible for the building and the property in the case of an event like fire - water damage
Landlord
diversification
debit card
chapter 7
37. The desire of a good or service
Pay Yourself First (PYF)
types of risk
demand
factors that affect your income
38. Using computers to carry out transfers of money
interest can benefit you when...
net pay
electronic banking
dividend
39. Account to help you save money and earn a small amount of interest at the same time
3 major credit bureaus
wants
short term goals
savings account
40. You owe money (ex: credit card - loan)
mutual funds (MF)
factors that affect your income
interest can be bad for you when....
savings account
41. 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.
42. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
blue chip stocks
discretionary income
simple interest
CPI's relation to inflation
43. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
Annual percentage rate (APR)
demand
Federal Open Market Committee (FOMC)
collateral
44. Expenses that change from month to month
Truth in Lending Act
chapter 7
variable expenses
factors that affect a mortgage
45. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
compound interest
financing an item
factors that affect a mortgage
Federal Open Market Committee (FOMC)
46. 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
how insurance is related to risk management
debit card
Dow Jones
bankruptcy
47. The portion of corporate profits paid out to stockholders
dividend
supply
Truth in Lending Act
tips for using credit wisely
48. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
National Association of Securities Dealers Automated Quotations (NASDAQ)
Federal Open Market Committee (FOMC)
credit report
short term debt
49. Items you need to survive ex: food - water
Tenant
needs
Law of Supply and Demand
short term goals
50. Interest rates - length of time to borrow money
simple interest
supply
things that affect loans
Law of Supply and Demand