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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. 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.
supply
Federal Deposit Insurance Corporation (FDIC)
chapter 7
Law of Supply and Demand
2. 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
Federal Deposit Insurance Corporation (FDIC)
long term goals
bankruptcy
short term goals
3. Debts due within the next year (ex: loans - credit cards)
Pay Yourself First (PYF)
short term debt
savings account
needs
4. Goal in which you plan to prepare for and reach in the distant future - over 5 years
certificate of deposit or CD
Annual percentage rate (APR)
long term goals
National Association of Securities Dealers Automated Quotations (NASDAQ)
5. You owe money (ex: credit card - loan)
interest can be bad for you when....
debit card
supply
Dow Jones
6. Formula used to calculate how many years it would take to double an investment
interest
compound interest
certificate of deposit or CD
Rule of 72
7. Source of information in determining a fair price for a vehicle - new or used
compound interest
Kelley Blue Book
short term debt
tips for a successful budget
8. A fixed charge for borrowing money
collateral
Pay Yourself First (PYF)
interest
time value of money
9. Responsible for their own personal belongings in the case of an event like fire - water damage
inflation
Tenant
factors that affect a mortgage
disposable income
10. Lenders must disclose all costs of credit
inflation
Truth in Lending Act
Annual percentage rate (APR)
Landlord
11. Spreading out investments to reduce risk
dividend
diversification
credit report
emergency fund
12. 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.
13. The total amount of an employee's earnings before deductions are taken out
gross pay
interest can benefit you when...
Federal Open Market Committee (FOMC)
short term debt
14. Account to help you save money and earn a small amount of interest at the same time
savings account
time value of money
co-signing a loan
variable expenses
15. Regulates banks - makes short term loans to banks - conducts monetary policy
collection agency or debt collector
reasons not to invest in stocks
Federal Reserve System (FED)
factors that affect your income
16. Time - amount of money - rate of interest
time value of money
needs
National Association of Securities Dealers Automated Quotations (NASDAQ)
insurance
17. Pursues payments on debts owed by individuals or businesses
factors that affect a mortgage
long term goals
how insurance is related to risk management
collection agency or debt collector
18. The money left to spend or save after taxes have been paid
collection agency or debt collector
Dow Jones
disposable income
discretionary income
19. High-priced common stocks that have been strong - profitable stocks for a long period of time.
collection agency or debt collector
interest can be bad for you when....
factors that affect a mortgage
blue chip stocks
20. 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
savings account
bankruptcy
Law of Supply and Demand
21. Items you need to survive ex: food - water
Pay Yourself First (PYF)
needs
discretionary income
National Association of Securities Dealers Automated Quotations (NASDAQ)
22. Stocks that pay low dividends - but are expected to grow
growth stocks
compound interest
things that affect loans
Rule of 72
23. Interest rates - length of time to borrow money
blue chip stocks
credit report
things that affect loans
demand
24. Enforces securities laws and regulates the securities industry
mutual funds (MF)
diversification
Securities and Exchange Commission (SEC)
reasons to invest in stocks
25. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
Pay Yourself First (PYF)
Federal Deposit Insurance Corporation (FDIC)
tips for using credit wisely
how insurance is related to risk management
26. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
Tenant
chapter 7
discretionary income
debit card
27. Allows pay back of debt with more time - court oversees repayment of plan
chapter 13
savings account
factors that affect a mortgage
collection agency or debt collector
28. Set costs that must be paid such as rent - insurance - and car payments
fixed expenses
Landlord
diversification
insurance
29. The total earnings paid to an employee after payroll taxes and other deductions
net pay
interest can benefit you when...
diversification
Dow Jones
30. Goal in which you plan to reach in the near future - one year or less
short term goals
co-signing a loan
New York Stock Exchange (NYSE)
interest can be bad for you when....
31. The availability of a good or service
Kelley Blue Book
supply
Dow Jones
credit report
32. Carefully planned - practical - flexible - written and accessible
disposable income
tips for a successful budget
credit report
emergency fund
33. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
savings account
collection agency or debt collector
chapter 7
Landlord
34. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
3 major credit bureaus
interest can benefit you when...
certificate of deposit or CD
Annual percentage rate (APR)
35. The portion of corporate profits paid out to stockholders
gross pay
long term goals
time value of money
dividend
36. Risky
CPI's relation to inflation
National Association of Securities Dealers Automated Quotations (NASDAQ)
reasons not to invest in stocks
return
37. Can be profitable - liquid
compound interest
chapter 7
reasons to invest in stocks
factors that affect a mortgage
38. A way to guarantee your financial protection against various risks
insurance
Dow Jones
Pay Yourself First (PYF)
how insurance is related to risk management
39. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
National Association of Securities Dealers Automated Quotations (NASDAQ)
certificate of deposit or CD
Federal Open Market Committee (FOMC)
Landlord
40. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
Rule of 72
factors that affect a mortgage
budget
reasons to invest in stocks
41. The increase in price of goods and services
inflation
risk
mutual funds (MF)
co-signing a loan
42. Agree to be responsible for loan payments if the other person can't make them
time value of money
certificate of deposit or CD
co-signing a loan
Federal Open Market Committee (FOMC)
43. Only responsible for the building and the property in the case of an event like fire - water damage
diversification
disposable income
simple interest
Landlord
44. Income risk - personal risk - liquidity risk - interest rate risk
supply
interest
gross pay
types of risk
45. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
return
collection agency or debt collector
compound interest
National Association of Securities Dealers Automated Quotations (NASDAQ)
46. Using computers to carry out transfers of money
reasons not to invest in stocks
bankruptcy
electronic banking
how insurance is related to risk management
47. Protects depository institution accounts - incures commercial banks and savings and loan
mutual funds (MF)
Rule of 72
Federal Deposit Insurance Corporation (FDIC)
fixed expenses
48. The possibility for loss on an investment
fixed expenses
blue chip stocks
Truth in Lending Act
risk
49. The money an investor receives above and beyond the sum of money initially invested
collateral
needs
Annual percentage rate (APR)
return
50. 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
insurance
Rule of 72
debit card
Securities and Exchange Commission (SEC)