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