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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. Protects you from the probability that injury - damage or loss will occur
short term debt
interest
debit card
how insurance is related to risk management
2. Enforces securities laws and regulates the securities industry
insurance
chapter 7
growth stocks
Securities and Exchange Commission (SEC)
3. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
factors that affect a mortgage
chapter 7
credit record
certificate of deposit or CD
4. 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)
disposable income
Landlord
bankruptcy
5. Responsible for their own personal belongings in the case of an event like fire - water damage
gross pay
collection agency or debt collector
Tenant
budget
6. Items you need to survive ex: food - water
needs
interest
opportunity cost
short term debt
7. Account to help you save money and earn a small amount of interest at the same time
variable expenses
liquidity
Federal Open Market Committee (FOMC)
savings account
8. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
diversification
emergency fund
types of risk
compound interest
9. The money an investor receives above and beyond the sum of money initially invested
return
Kelley Blue Book
mutual funds (MF)
tips for a successful budget
10. 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
factors that affect a mortgage
dividend
reasons not to invest in stocks
11. Lenders must disclose all costs of credit
chapter 13
short term debt
factors that affect a mortgage
Truth in Lending Act
12. Investment that pools money from many investors to invest in stocks - bonds and other securities
debit card
mutual funds (MF)
variable expenses
tips for a successful budget
13. Can be profitable - liquid
Federal Deposit Insurance Corporation (FDIC)
types of risk
tips for a successful budget
reasons to invest in stocks
14. To borrow money from a bank to purchase an item and pay for it over time
blue chip stocks
compound interest
financing an item
dividend
15. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
emergency fund
fixed expenses
tax deferred
opportunity cost
16. 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.
17. 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
dividend
Kelley Blue Book
bankruptcy
18. Ability to convert to cash and maintain value
chapter 13
liquidity
reasons not to invest in stocks
tips for using credit wisely
19. The money left to spend or save after taxes have been paid
disposable income
chapter 7
simple interest
Pay Yourself First (PYF)
20. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
chapter 7
fixed expenses
blue chip stocks
tips for using credit wisely
21. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
factors that affect a mortgage
Rule of 72
Dow Jones
collateral
22. Interest paid on the principal alone (I=p x r x t)
inflation
interest can be bad for you when....
simple interest
Pay Yourself First (PYF)
23. The increase in price of goods and services
blue chip stocks
inflation
disposable income
Landlord
24. The possibility for loss on an investment
insurance
risk
disposable income
collateral
25. Pursues payments on debts owed by individuals or businesses
factors that affect a mortgage
collection agency or debt collector
Tenant
factors that affect your income
26. Using computers to carry out transfers of money
discretionary income
electronic banking
tips for a successful budget
gross pay
27. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
Pay Yourself First (PYF)
interest can benefit you when...
co-signing a loan
National Association of Securities Dealers Automated Quotations (NASDAQ)
28. Time - amount of money - rate of interest
Pay Yourself First (PYF)
Rule of 72
Federal Reserve System (FED)
time value of money
29. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
collateral
opportunity cost
dividend
short term goals
30. Regulates banks - makes short term loans to banks - conducts monetary policy
chapter 7
Federal Reserve System (FED)
3 major credit bureaus
how insurance is related to risk management
31. 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
New York Stock Exchange (NYSE)
tips for a successful budget
variable expenses
opportunity cost
32. You are being paid for it (ex: investment)
interest can benefit you when...
fixed expenses
Annual percentage rate (APR)
credit report
33. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
return
long term goals
tax deferred
variable expenses
34. The portion of corporate profits paid out to stockholders
dividend
time value of money
reasons to invest in stocks
discretionary income
35. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
discretionary income
factors that affect a mortgage
supply
debit card
36. Spreading out investments to reduce risk
wants
risk
types of risk
diversification
37. 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
Federal Deposit Insurance Corporation (FDIC)
tips for using credit wisely
Securities and Exchange Commission (SEC)
Law of Supply and Demand
38. Expenses that change from month to month
variable expenses
Pay Yourself First (PYF)
bankruptcy
Landlord
39. A way to guarantee your financial protection against various risks
Dow Jones
certificate of deposit or CD
insurance
emergency fund
40. Income risk - personal risk - liquidity risk - interest rate risk
types of risk
inflation
Dow Jones
variable expenses
41. The total amount of an employee's earnings before deductions are taken out
gross pay
types of risk
short term debt
3 major credit bureaus
42. Goal in which you plan to reach in the near future - one year or less
interest can benefit you when...
long term goals
time value of money
short term goals
43. Salary - wages - interest - campital gains - commission
chapter 13
factors that affect your income
emergency fund
Tenant
44. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
types of risk
Annual percentage rate (APR)
Pay Yourself First (PYF)
return
45. High-priced common stocks that have been strong - profitable stocks for a long period of time.
blue chip stocks
Pay Yourself First (PYF)
Securities and Exchange Commission (SEC)
reasons not to invest in stocks
46. Interest rates - length of time to borrow money
time value of money
long term goals
gross pay
things that affect loans
47. 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
Kelley Blue Book
debit card
factors that affect your income
budget
48. Only responsible for the building and the property in the case of an event like fire - water damage
Securities and Exchange Commission (SEC)
electronic banking
bankruptcy
Landlord
49. Stocks that pay low dividends - but are expected to grow
supply
discretionary income
co-signing a loan
growth stocks
50. A log of the financial habits of a person who buys on credit.
credit record
wants
variable expenses
how insurance is related to risk management