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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. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
time value of money
disposable income
chapter 7
dividend
2. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
credit report
Pay Yourself First (PYF)
reasons not to invest in stocks
credit record
3. 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
tips for using credit wisely
interest
types of risk
return
4. Agree to be responsible for loan payments if the other person can't make them
simple interest
co-signing a loan
compound interest
Dow Jones
5. Investment that pools money from many investors to invest in stocks - bonds and other securities
time value of money
Pay Yourself First (PYF)
mutual funds (MF)
types of risk
6. Allows pay back of debt with more time - court oversees repayment of plan
things that affect loans
needs
chapter 13
bankruptcy
7. Risky
simple interest
collection agency or debt collector
tips for a successful budget
reasons not to invest in stocks
8. 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.
tax deferred
budget
collection agency or debt collector
credit report
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
interest
debit card
chapter 7
things that affect loans
10. The total amount of an employee's earnings before deductions are taken out
types of risk
chapter 13
gross pay
things that affect loans
11. The desire of a good or service
Rule of 72
discretionary income
Federal Deposit Insurance Corporation (FDIC)
demand
12. Goal in which you plan to reach in the near future - one year or less
things that affect loans
dividend
needs
short term goals
13. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
collateral
discretionary income
Rule of 72
diversification
14. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
emergency fund
budget
collection agency or debt collector
interest can benefit you when...
15. The availability of a good or service
Securities and Exchange Commission (SEC)
credit report
supply
Annual percentage rate (APR)
16. Lenders must disclose all costs of credit
CPI's relation to inflation
compound interest
collection agency or debt collector
Truth in Lending Act
17. Debts due within the next year (ex: loans - credit cards)
short term debt
credit report
time value of money
3 major credit bureaus
18. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
electronic banking
Dow Jones
interest
needs
19. 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.
Law of Supply and Demand
New York Stock Exchange (NYSE)
collection agency or debt collector
tips for using credit wisely
20. A plan for managing your money for a given period of time
budget
Federal Reserve System (FED)
compound interest
chapter 13
21. Pursues payments on debts owed by individuals or businesses
credit record
collection agency or debt collector
return
New York Stock Exchange (NYSE)
22. Spreading out investments to reduce risk
fixed expenses
opportunity cost
net pay
diversification
23. Using computers to carry out transfers of money
debit card
savings account
demand
electronic banking
24. Can be profitable - liquid
credit report
net pay
collection agency or debt collector
reasons to invest in stocks
25. 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.
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26. Protects you from the probability that injury - damage or loss will occur
how insurance is related to risk management
reasons to invest in stocks
needs
debit card
27. 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
emergency fund
how insurance is related to risk management
reasons not to invest in stocks
28. You owe money (ex: credit card - loan)
factors that affect a mortgage
co-signing a loan
interest can be bad for you when....
Securities and Exchange Commission (SEC)
29. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
Annual percentage rate (APR)
Kelley Blue Book
opportunity cost
discretionary income
30. Interest paid on the principal alone (I=p x r x t)
dividend
collateral
Tenant
simple interest
31. The portion of corporate profits paid out to stockholders
3 major credit bureaus
gross pay
net pay
dividend
32. Source of information in determining a fair price for a vehicle - new or used
interest can benefit you when...
Landlord
Kelley Blue Book
simple interest
33. Interest rates - length of time to borrow money
electronic banking
gross pay
reasons to invest in stocks
things that affect loans
34. The possibility for loss on an investment
short term goals
risk
wants
Pay Yourself First (PYF)
35. Protects depository institution accounts - incures commercial banks and savings and loan
Federal Open Market Committee (FOMC)
Federal Deposit Insurance Corporation (FDIC)
electronic banking
disposable income
36. Goal in which you plan to prepare for and reach in the distant future - over 5 years
Annual percentage rate (APR)
long term goals
types of risk
interest can benefit you when...
37. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
Truth in Lending Act
tips for using credit wisely
National Association of Securities Dealers Automated Quotations (NASDAQ)
New York Stock Exchange (NYSE)
38. Salary - wages - interest - campital gains - commission
reasons not to invest in stocks
collection agency or debt collector
factors that affect your income
financing an item
39. Set costs that must be paid such as rent - insurance - and car payments
fixed expenses
demand
interest can benefit you when...
short term goals
40. The money an investor receives above and beyond the sum of money initially invested
discretionary income
return
wants
factors that affect a mortgage
41. The value of buying one item over another
blue chip stocks
Securities and Exchange Commission (SEC)
opportunity cost
net pay
42. Enforces securities laws and regulates the securities industry
Federal Reserve System (FED)
National Association of Securities Dealers Automated Quotations (NASDAQ)
things that affect loans
Securities and Exchange Commission (SEC)
43. Formula used to calculate how many years it would take to double an investment
bankruptcy
Rule of 72
credit record
certificate of deposit or CD
44. The total earnings paid to an employee after payroll taxes and other deductions
Pay Yourself First (PYF)
credit record
net pay
long term goals
45. Carefully planned - practical - flexible - written and accessible
dividend
tips for a successful budget
fixed expenses
Landlord
46. Stocks that pay low dividends - but are expected to grow
financing an item
tips for a successful budget
growth stocks
simple interest
47. 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
Pay Yourself First (PYF)
bankruptcy
inflation
Kelley Blue Book
48. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
New York Stock Exchange (NYSE)
tax deferred
blue chip stocks
growth stocks
49. A fixed charge for borrowing money
net pay
interest
bankruptcy
savings account
50. Regulates banks - makes short term loans to banks - conducts monetary policy
needs
credit record
Federal Reserve System (FED)
Kelley Blue Book