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. The value of buying one item over another






2. The desire of a good or service






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






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






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






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






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






8. 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






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






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






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






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






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






14. Equifax - Experian - TransUnion






15. The portion of corporate profits paid out to stockholders






16. Using computers to carry out transfers of money






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






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






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






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






21. 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.






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






23. Expenses that change from month to month






24. 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






25. 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.






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






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






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






29. Ability to convert to cash and maintain value






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






31. Spreading out investments to reduce risk






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






33. 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






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






35. Investment that pools money from many investors to invest in stocks - bonds and other securities






36. Interest rates - length of time to borrow money






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






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






39. Enforces securities laws and regulates the securities industry






40. The possibility for loss on an investment






41. A fixed charge for borrowing money






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






43. Risky






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






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






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






47. The total amount of an employee's earnings before deductions are taken out






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






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






50. The increase in price of goods and services