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. Expenses that change from month to month






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






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






4. The desire of a good or service






5. 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.


6. Can be profitable - liquid






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






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






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






10. Interest rates - length of time to borrow money






11. Pursues payments on debts owed by individuals or businesses






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






13. The value of buying one item over another






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






15. Goal in which you plan to reach in the near future - one year or less






16. 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






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






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






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






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






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






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






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






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






25. 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.






26. A fixed charge for borrowing money






27. 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.






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






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






30. Lenders must disclose all costs of credit






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






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






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






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






35. The possibility for loss on an investment






36. Goal in which you plan to prepare for and reach in the distant future - over 5 years






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






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






39. High-priced common stocks that have been strong - profitable stocks for a long period of time.






40. Carefully planned - practical - flexible - written and accessible






41. Time - amount of money - rate of interest






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






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






44. Equifax - Experian - TransUnion






45. Risky






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






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






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






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






50. Ability to convert to cash and maintain value