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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. Using computers to carry out transfers of money
Rule of 72
insurance
electronic banking
growth stocks
2. 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.
short term goals
National Association of Securities Dealers Automated Quotations (NASDAQ)
Law of Supply and Demand
Landlord
3. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
factors that affect a mortgage
needs
Federal Deposit Insurance Corporation (FDIC)
Annual percentage rate (APR)
4. Pursues payments on debts owed by individuals or businesses
growth stocks
chapter 7
collection agency or debt collector
net pay
5. Enforces securities laws and regulates the securities industry
factors that affect your income
Securities and Exchange Commission (SEC)
co-signing a loan
bankruptcy
6. Account to help you save money and earn a small amount of interest at the same time
demand
savings account
Federal Reserve System (FED)
3 major credit bureaus
7. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
reasons to invest in stocks
Annual percentage rate (APR)
interest can be bad for you when....
insurance
8. Goal in which you plan to reach in the near future - one year or less
variable expenses
Rule of 72
National Association of Securities Dealers Automated Quotations (NASDAQ)
short term goals
9. Protects depository institution accounts - incures commercial banks and savings and loan
opportunity cost
needs
reasons not to invest in stocks
Federal Deposit Insurance Corporation (FDIC)
10. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
short term debt
credit report
insurance
collateral
11. Goal in which you plan to prepare for and reach in the distant future - over 5 years
risk
long term goals
Kelley Blue Book
financing an item
12. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
Dow Jones
gross pay
return
13. Allows pay back of debt with more time - court oversees repayment of plan
credit record
3 major credit bureaus
Landlord
chapter 13
14. The possibility for loss on an investment
New York Stock Exchange (NYSE)
Annual percentage rate (APR)
risk
Federal Open Market Committee (FOMC)
15. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
blue chip stocks
emergency fund
certificate of deposit or CD
collateral
16. Ability to convert to cash and maintain value
credit report
inflation
liquidity
Kelley Blue Book
17. The money left to spend or save after taxes have been paid
chapter 7
disposable income
variable expenses
how insurance is related to risk management
18. A way to guarantee your financial protection against various risks
Federal Deposit Insurance Corporation (FDIC)
dividend
insurance
Landlord
19. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
dividend
3 major credit bureaus
interest
20. Interest paid on the principal alone (I=p x r x t)
variable expenses
financing an item
Law of Supply and Demand
simple interest
21. 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.
emergency fund
credit report
National Association of Securities Dealers Automated Quotations (NASDAQ)
Law of Supply and Demand
22. Time - amount of money - rate of interest
insurance
time value of money
co-signing a loan
electronic banking
23. Set costs that must be paid such as rent - insurance - and car payments
debit card
fixed expenses
Truth in Lending Act
collection agency or debt collector
24. Items you need to survive ex: food - water
factors that affect your income
needs
interest
electronic banking
25. 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
collection agency or debt collector
New York Stock Exchange (NYSE)
interest can be bad for you when....
risk
26. Agree to be responsible for loan payments if the other person can't make them
blue chip stocks
co-signing a loan
3 major credit bureaus
dividend
27. The value of buying one item over another
Dow Jones
opportunity cost
Federal Deposit Insurance Corporation (FDIC)
short term debt
28. Responsible for their own personal belongings in the case of an event like fire - water damage
wants
growth stocks
Tenant
factors that affect a mortgage
29. The money an investor receives above and beyond the sum of money initially invested
gross pay
collection agency or debt collector
tips for a successful budget
return
30. Salary - wages - interest - campital gains - commission
insurance
diversification
factors that affect your income
risk
31. 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.
32. 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
reasons not to invest in stocks
bankruptcy
debit card
dividend
33. The availability of a good or service
budget
supply
inflation
Rule of 72
34. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
New York Stock Exchange (NYSE)
Federal Deposit Insurance Corporation (FDIC)
diversification
tax deferred
35. High-priced common stocks that have been strong - profitable stocks for a long period of time.
short term debt
blue chip stocks
tips for using credit wisely
Pay Yourself First (PYF)
36. Investment that pools money from many investors to invest in stocks - bonds and other securities
mutual funds (MF)
financing an item
risk
time value of money
37. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
long term goals
budget
simple interest
38. A fixed charge for borrowing money
factors that affect your income
Rule of 72
liquidity
interest
39. Stocks that pay low dividends - but are expected to grow
credit report
factors that affect a mortgage
Truth in Lending Act
growth stocks
40. Can be profitable - liquid
net pay
interest can be bad for you when....
reasons to invest in stocks
Law of Supply and Demand
41. A plan for managing your money for a given period of time
National Association of Securities Dealers Automated Quotations (NASDAQ)
New York Stock Exchange (NYSE)
return
budget
42. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
interest
interest can be bad for you when....
tax deferred
National Association of Securities Dealers Automated Quotations (NASDAQ)
43. 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
electronic banking
interest can benefit you when...
collection agency or debt collector
44. Interest rates - length of time to borrow money
how insurance is related to risk management
Truth in Lending Act
things that affect loans
supply
45. You owe money (ex: credit card - loan)
short term goals
interest can be bad for you when....
Pay Yourself First (PYF)
factors that affect your income
46. Spreading out investments to reduce risk
time value of money
diversification
Dow Jones
fixed expenses
47. You are being paid for it (ex: investment)
short term goals
discretionary income
interest can benefit you when...
Securities and Exchange Commission (SEC)
48. Formula used to calculate how many years it would take to double an investment
reasons to invest in stocks
Rule of 72
interest can be bad for you when....
electronic banking
49. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
disposable income
Dow Jones
credit report
tax deferred
50. Items for enjoyment ex: eating out - entertainment - luxury items
New York Stock Exchange (NYSE)
budget
wants
tax deferred