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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. Source of information in determining a fair price for a vehicle - new or used
Kelley Blue Book
insurance
3 major credit bureaus
collateral
2. Only responsible for the building and the property in the case of an event like fire - water damage
dividend
collection agency or debt collector
certificate of deposit or CD
Landlord
3. Goal in which you plan to prepare for and reach in the distant future - over 5 years
wants
Pay Yourself First (PYF)
factors that affect a mortgage
long term goals
4. Carefully planned - practical - flexible - written and accessible
discretionary income
fixed expenses
tips for a successful budget
time value of money
5. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
tips for a successful budget
Annual percentage rate (APR)
Pay Yourself First (PYF)
insurance
6. Equifax - Experian - TransUnion
chapter 7
3 major credit bureaus
diversification
gross pay
7. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
Tenant
certificate of deposit or CD
credit record
chapter 7
8. Protects you from the probability that injury - damage or loss will occur
discretionary income
how insurance is related to risk management
risk
insurance
9. 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
debit card
collateral
tax deferred
fixed expenses
10. Set costs that must be paid such as rent - insurance - and car payments
long term goals
fixed expenses
Annual percentage rate (APR)
credit record
11. Can be profitable - liquid
mutual funds (MF)
reasons to invest in stocks
opportunity cost
factors that affect a mortgage
12. 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)
tax deferred
supply
interest can benefit you when...
13. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
fixed expenses
bankruptcy
discretionary income
blue chip stocks
14. 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.
needs
Law of Supply and Demand
short term goals
interest
15. Using computers to carry out transfers of money
Landlord
Tenant
electronic banking
factors that affect your income
16. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
chapter 13
reasons to invest in stocks
tips for using credit wisely
Pay Yourself First (PYF)
17. The increase in price of goods and services
CPI's relation to inflation
emergency fund
disposable income
inflation
18. Protects depository institution accounts - incures commercial banks and savings and loan
Federal Deposit Insurance Corporation (FDIC)
electronic banking
long term goals
Truth in Lending Act
19. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
Tenant
collection agency or debt collector
certificate of deposit or CD
bankruptcy
20. Salary - wages - interest - campital gains - commission
3 major credit bureaus
tips for using credit wisely
risk
factors that affect your income
21. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
liquidity
3 major credit bureaus
reasons to invest in stocks
22. The portion of corporate profits paid out to stockholders
credit report
National Association of Securities Dealers Automated Quotations (NASDAQ)
dividend
wants
23. Allows pay back of debt with more time - court oversees repayment of plan
gross pay
chapter 13
Kelley Blue Book
3 major credit bureaus
24. Account to help you save money and earn a small amount of interest at the same time
factors that affect a mortgage
savings account
diversification
tips for using credit wisely
25. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
net pay
credit record
short term goals
emergency fund
26. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
net pay
liquidity
tax deferred
financing an item
27. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
long term goals
net pay
factors that affect a mortgage
Securities and Exchange Commission (SEC)
28. Income risk - personal risk - liquidity risk - interest rate risk
types of risk
factors that affect your income
reasons not to invest in stocks
short term debt
29. Goal in which you plan to reach in the near future - one year or less
discretionary income
mutual funds (MF)
short term goals
types of risk
30. 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
Law of Supply and Demand
reasons not to invest in stocks
short term debt
bankruptcy
31. Formula used to calculate how many years it would take to double an investment
National Association of Securities Dealers Automated Quotations (NASDAQ)
opportunity cost
Rule of 72
chapter 13
32. Expenses that change from month to month
electronic banking
interest can benefit you when...
debit card
variable expenses
33. 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.
34. Enforces securities laws and regulates the securities industry
wants
Landlord
tips for a successful budget
Securities and Exchange Commission (SEC)
35. Lenders must disclose all costs of credit
mutual funds (MF)
simple interest
Rule of 72
Truth in Lending Act
36. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
Dow Jones
compound interest
disposable income
short term goals
37. Debts due within the next year (ex: loans - credit cards)
debit card
net pay
mutual funds (MF)
short term debt
38. The possibility for loss on an investment
demand
risk
compound interest
wants
39. The value of buying one item over another
things that affect loans
opportunity cost
CPI's relation to inflation
how insurance is related to risk management
40. Risky
reasons not to invest in stocks
debit card
chapter 13
things that affect loans
41. A plan for managing your money for a given period of time
Rule of 72
supply
budget
blue chip stocks
42. A log of the financial habits of a person who buys on credit.
return
chapter 13
credit record
net pay
43. Time - amount of money - rate of interest
reasons not to invest in stocks
factors that affect a mortgage
time value of money
wants
44. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
Landlord
Kelley Blue Book
Federal Deposit Insurance Corporation (FDIC)
45. A fixed charge for borrowing money
interest
interest can be bad for you when....
3 major credit bureaus
inflation
46. Ability to convert to cash and maintain value
Law of Supply and Demand
blue chip stocks
liquidity
bankruptcy
47. High-priced common stocks that have been strong - profitable stocks for a long period of time.
Law of Supply and Demand
blue chip stocks
certificate of deposit or CD
tax deferred
48. Interest paid on the principal alone (I=p x r x t)
fixed expenses
simple interest
budget
financing an item
49. Items you need to survive ex: food - water
risk
budget
compound interest
needs
50. Pursues payments on debts owed by individuals or businesses
collection agency or debt collector
Rule of 72
New York Stock Exchange (NYSE)
financing an item