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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. A plan for managing your money for a given period of time
factors that affect your income
budget
Landlord
co-signing a loan
2. Stocks that pay low dividends - but are expected to grow
insurance
growth stocks
gross pay
short term goals
3. Risky
collection agency or debt collector
dividend
reasons not to invest in stocks
Rule of 72
4. High-priced common stocks that have been strong - profitable stocks for a long period of time.
blue chip stocks
debit card
co-signing a loan
National Association of Securities Dealers Automated Quotations (NASDAQ)
5. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
Federal Deposit Insurance Corporation (FDIC)
blue chip stocks
certificate of deposit or CD
short term debt
6. 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
short term goals
reasons to invest in stocks
debit card
certificate of deposit or CD
7. Can be profitable - liquid
blue chip stocks
mutual funds (MF)
reasons to invest in stocks
debit card
8. Enforces securities laws and regulates the securities industry
Securities and Exchange Commission (SEC)
electronic banking
wants
reasons not to invest in stocks
9. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
things that affect loans
tax deferred
factors that affect a mortgage
Dow Jones
10. Items for enjoyment ex: eating out - entertainment - luxury items
wants
CPI's relation to inflation
reasons not to invest in stocks
chapter 13
11. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
emergency fund
CPI's relation to inflation
growth stocks
12. Agree to be responsible for loan payments if the other person can't make them
co-signing a loan
emergency fund
credit report
certificate of deposit or CD
13. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
liquidity
Annual percentage rate (APR)
CPI's relation to inflation
co-signing a loan
14. A fixed charge for borrowing money
Tenant
interest
factors that affect a mortgage
debit card
15. A way to guarantee your financial protection against various risks
fixed expenses
insurance
electronic banking
short term goals
16. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
co-signing a loan
short term goals
Landlord
17. 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
interest
tips for using credit wisely
tips for a successful budget
opportunity cost
18. Expenses that change from month to month
variable expenses
National Association of Securities Dealers Automated Quotations (NASDAQ)
reasons not to invest in stocks
3 major credit bureaus
19. Responsible for their own personal belongings in the case of an event like fire - water damage
Tenant
mutual funds (MF)
risk
Annual percentage rate (APR)
20. Using computers to carry out transfers of money
time value of money
electronic banking
credit record
things that affect loans
21. Formula used to calculate how many years it would take to double an investment
opportunity cost
collateral
Rule of 72
reasons to invest in stocks
22. Only responsible for the building and the property in the case of an event like fire - water damage
tips for a successful budget
Landlord
needs
Truth in Lending Act
23. 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
mutual funds (MF)
return
bankruptcy
diversification
24. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
variable expenses
liquidity
Federal Reserve System (FED)
National Association of Securities Dealers Automated Quotations (NASDAQ)
25. Set costs that must be paid such as rent - insurance - and car payments
reasons to invest in stocks
fixed expenses
compound interest
collateral
26. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
demand
compound interest
budget
factors that affect a mortgage
27. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
inflation
budget
discretionary income
liquidity
28. Debts due within the next year (ex: loans - credit cards)
growth stocks
short term debt
budget
tax deferred
29. Allows pay back of debt with more time - court oversees repayment of plan
chapter 13
National Association of Securities Dealers Automated Quotations (NASDAQ)
New York Stock Exchange (NYSE)
simple interest
30. Salary - wages - interest - campital gains - commission
factors that affect your income
things that affect loans
liquidity
interest
31. You are being paid for it (ex: investment)
interest can benefit you when...
Law of Supply and Demand
Landlord
collateral
32. You owe money (ex: credit card - loan)
return
factors that affect a mortgage
interest can be bad for you when....
disposable income
33. The total amount of an employee's earnings before deductions are taken out
gross pay
savings account
Pay Yourself First (PYF)
insurance
34. The value of buying one item over another
opportunity cost
return
tax deferred
long term goals
35. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
discretionary income
CPI's relation to inflation
diversification
chapter 7
36. To borrow money from a bank to purchase an item and pay for it over time
financing an item
growth stocks
inflation
Rule of 72
37. The total earnings paid to an employee after payroll taxes and other deductions
Tenant
net pay
credit record
discretionary income
38. 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.
39. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
Securities and Exchange Commission (SEC)
budget
compound interest
collateral
40. Income risk - personal risk - liquidity risk - interest rate risk
demand
discretionary income
types of risk
disposable income
41. Items you need to survive ex: food - water
needs
Dow Jones
New York Stock Exchange (NYSE)
Landlord
42. Pursues payments on debts owed by individuals or businesses
disposable income
discretionary income
diversification
collection agency or debt collector
43. Spreading out investments to reduce risk
diversification
tips for using credit wisely
certificate of deposit or CD
electronic banking
44. Time - amount of money - rate of interest
collection agency or debt collector
compound interest
time value of money
bankruptcy
45. Equifax - Experian - TransUnion
savings account
Annual percentage rate (APR)
3 major credit bureaus
types of risk
46. Lenders must disclose all costs of credit
3 major credit bureaus
emergency fund
Truth in Lending Act
interest can benefit you when...
47. Carefully planned - practical - flexible - written and accessible
CPI's relation to inflation
variable expenses
3 major credit bureaus
tips for a successful budget
48. Protects depository institution accounts - incures commercial banks and savings and loan
financing an item
insurance
Federal Deposit Insurance Corporation (FDIC)
tips for using credit wisely
49. Protects you from the probability that injury - damage or loss will occur
how insurance is related to risk management
tips for using credit wisely
Pay Yourself First (PYF)
short term goals
50. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
short term debt
tips for a successful budget
emergency fund
Truth in Lending Act