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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. Equifax - Experian - TransUnion
demand
short term goals
3 major credit bureaus
National Association of Securities Dealers Automated Quotations (NASDAQ)
2. A plan for managing your money for a given period of time
budget
financing an item
collection agency or debt collector
insurance
3. The value of buying one item over another
opportunity cost
inflation
disposable income
diversification
4. 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
factors that affect a mortgage
blue chip stocks
bankruptcy
interest can be bad for you when....
5. Allows pay back of debt with more time - court oversees repayment of plan
Annual percentage rate (APR)
debit card
chapter 13
return
6. 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.
return
Law of Supply and Demand
Rule of 72
Securities and Exchange Commission (SEC)
7. The availability of a good or service
tips for using credit wisely
chapter 13
supply
Annual percentage rate (APR)
8. 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
growth stocks
insurance
wants
tips for using credit wisely
9. Source of information in determining a fair price for a vehicle - new or used
diversification
compound interest
Kelley Blue Book
savings account
10. Items for enjoyment ex: eating out - entertainment - luxury items
certificate of deposit or CD
wants
types of risk
reasons to invest in stocks
11. Set costs that must be paid such as rent - insurance - and car payments
return
opportunity cost
Landlord
fixed expenses
12. The increase in price of goods and services
co-signing a loan
certificate of deposit or CD
inflation
savings account
13. Goal in which you plan to reach in the near future - one year or less
short term goals
credit record
demand
credit report
14. Protects you from the probability that injury - damage or loss will occur
risk
return
how insurance is related to risk management
dividend
15. Account to help you save money and earn a small amount of interest at the same time
needs
savings account
insurance
Law of Supply and Demand
16. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
CPI's relation to inflation
time value of money
credit report
discretionary income
17. Responsible for their own personal belongings in the case of an event like fire - water damage
Tenant
disposable income
Securities and Exchange Commission (SEC)
Rule of 72
18. Can be profitable - liquid
time value of money
financing an item
interest
reasons to invest in stocks
19. Formula used to calculate how many years it would take to double an investment
opportunity cost
demand
Rule of 72
long term goals
20. Interest paid on the principal alone (I=p x r x t)
simple interest
interest can be bad for you when....
Landlord
bankruptcy
21. Stocks that pay low dividends - but are expected to grow
growth stocks
inflation
Landlord
dividend
22. 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.
electronic banking
reasons not to invest in stocks
mutual funds (MF)
credit report
23. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
opportunity cost
National Association of Securities Dealers Automated Quotations (NASDAQ)
variable expenses
credit record
24. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
Tenant
chapter 13
collateral
factors that affect a mortgage
25. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
Dow Jones
factors that affect a mortgage
co-signing a loan
Pay Yourself First (PYF)
26. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
Rule of 72
inflation
time value of money
27. 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
Federal Reserve System (FED)
discretionary income
how insurance is related to risk management
28. Salary - wages - interest - campital gains - commission
Dow Jones
mutual funds (MF)
debit card
factors that affect your income
29. Using computers to carry out transfers of money
collection agency or debt collector
mutual funds (MF)
supply
electronic banking
30. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
certificate of deposit or CD
credit record
reasons to invest in stocks
tax deferred
31. You are being paid for it (ex: investment)
New York Stock Exchange (NYSE)
short term goals
debit card
interest can benefit you when...
32. Only responsible for the building and the property in the case of an event like fire - water damage
simple interest
chapter 7
Landlord
credit report
33. The total earnings paid to an employee after payroll taxes and other deductions
supply
chapter 13
net pay
Rule of 72
34. The money left to spend or save after taxes have been paid
return
short term goals
tax deferred
disposable income
35. Expenses that change from month to month
supply
Landlord
variable expenses
simple interest
36. The desire of a good or service
emergency fund
demand
collection agency or debt collector
compound interest
37. 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
Federal Reserve System (FED)
types of risk
supply
debit card
38. 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
Truth in Lending Act
New York Stock Exchange (NYSE)
wants
debit card
39. The possibility for loss on an investment
return
wants
risk
supply
40. The money an investor receives above and beyond the sum of money initially invested
opportunity cost
reasons not to invest in stocks
fixed expenses
return
41. Risky
reasons not to invest in stocks
Federal Reserve System (FED)
Pay Yourself First (PYF)
CPI's relation to inflation
42. To borrow money from a bank to purchase an item and pay for it over time
chapter 7
financing an item
certificate of deposit or CD
Tenant
43. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
interest
emergency fund
liquidity
diversification
44. Carefully planned - practical - flexible - written and accessible
tax deferred
tips for a successful budget
opportunity cost
how insurance is related to risk management
45. Regulates banks - makes short term loans to banks - conducts monetary policy
Securities and Exchange Commission (SEC)
Federal Reserve System (FED)
liquidity
inflation
46. High-priced common stocks that have been strong - profitable stocks for a long period of time.
Law of Supply and Demand
blue chip stocks
factors that affect a mortgage
diversification
47. Protects depository institution accounts - incures commercial banks and savings and loan
Federal Deposit Insurance Corporation (FDIC)
Pay Yourself First (PYF)
Landlord
credit record
48. Lenders must disclose all costs of credit
risk
Truth in Lending Act
National Association of Securities Dealers Automated Quotations (NASDAQ)
New York Stock Exchange (NYSE)
49. Spreading out investments to reduce risk
diversification
demand
CPI's relation to inflation
compound interest
50. Interest rates - length of time to borrow money
long term goals
factors that affect a mortgage
things that affect loans
collateral