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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 increase in price of goods and services
simple interest
inflation
reasons not to invest in stocks
factors that affect a mortgage
2. Set costs that must be paid such as rent - insurance - and car payments
simple interest
risk
bankruptcy
fixed expenses
3. The total earnings paid to an employee after payroll taxes and other deductions
net pay
collateral
compound interest
wants
4. Stocks that pay low dividends - but are expected to grow
New York Stock Exchange (NYSE)
blue chip stocks
growth stocks
National Association of Securities Dealers Automated Quotations (NASDAQ)
5. The desire of a good or service
compound interest
Landlord
factors that affect your income
demand
6. Interest paid on the principal alone (I=p x r x t)
bankruptcy
New York Stock Exchange (NYSE)
simple interest
mutual funds (MF)
7. Time - amount of money - rate of interest
financing an item
time value of money
disposable income
long term goals
8. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Deposit Insurance Corporation (FDIC)
CPI's relation to inflation
credit record
Federal Open Market Committee (FOMC)
9. Protects you from the probability that injury - damage or loss will occur
growth stocks
how insurance is related to risk management
collection agency or debt collector
financing an item
10. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
blue chip stocks
compound interest
inflation
savings account
11. 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.
credit report
return
Tenant
growth stocks
12. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
tax deferred
emergency fund
budget
short term goals
13. Debts due within the next year (ex: loans - credit cards)
short term debt
return
Kelley Blue Book
tax deferred
14. High-priced common stocks that have been strong - profitable stocks for a long period of time.
simple interest
credit record
short term goals
blue chip stocks
15. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
Federal Deposit Insurance Corporation (FDIC)
credit report
Annual percentage rate (APR)
supply
16. The money left to spend or save after taxes have been paid
disposable income
certificate of deposit or CD
variable expenses
Securities and Exchange Commission (SEC)
17. Income risk - personal risk - liquidity risk - interest rate risk
collateral
credit record
Tenant
types of risk
18. Equifax - Experian - TransUnion
disposable income
short term goals
3 major credit bureaus
New York Stock Exchange (NYSE)
19. Goal in which you plan to reach in the near future - one year or less
short term goals
fixed expenses
electronic banking
budget
20. To borrow money from a bank to purchase an item and pay for it over time
financing an item
compound interest
demand
insurance
21. 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
variable expenses
factors that affect your income
New York Stock Exchange (NYSE)
Rule of 72
22. Source of information in determining a fair price for a vehicle - new or used
factors that affect your income
3 major credit bureaus
interest can be bad for you when....
Kelley Blue Book
23. A way to guarantee your financial protection against various risks
blue chip stocks
Federal Open Market Committee (FOMC)
insurance
needs
24. Pursues payments on debts owed by individuals or businesses
collection agency or debt collector
interest
growth stocks
financing an item
25. Salary - wages - interest - campital gains - commission
insurance
Securities and Exchange Commission (SEC)
Rule of 72
factors that affect your income
26. The portion of corporate profits paid out to stockholders
demand
emergency fund
chapter 13
dividend
27. Can be profitable - liquid
reasons to invest in stocks
credit report
dividend
certificate of deposit or CD
28. Items for enjoyment ex: eating out - entertainment - luxury items
budget
discretionary income
emergency fund
wants
29. Responsible for their own personal belongings in the case of an event like fire - water damage
types of risk
liquidity
Tenant
debit card
30. 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
credit record
financing an item
needs
bankruptcy
31. Agree to be responsible for loan payments if the other person can't make them
Truth in Lending Act
Law of Supply and Demand
co-signing a loan
discretionary income
32. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
inflation
electronic banking
discretionary income
New York Stock Exchange (NYSE)
33. You are being paid for it (ex: investment)
net pay
interest can benefit you when...
Dow Jones
risk
34. The possibility for loss on an investment
chapter 7
reasons to invest in stocks
risk
interest can benefit you when...
35. 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.
mutual funds (MF)
Law of Supply and Demand
supply
3 major credit bureaus
36. Risky
Dow Jones
variable expenses
Annual percentage rate (APR)
reasons not to invest in stocks
37. The value of buying one item over another
New York Stock Exchange (NYSE)
Truth in Lending Act
opportunity cost
reasons to invest in stocks
38. Interest rates - length of time to borrow money
things that affect loans
fixed expenses
opportunity cost
types of risk
39. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
emergency fund
interest
supply
net pay
40. Only responsible for the building and the property in the case of an event like fire - water damage
short term debt
simple interest
Landlord
emergency fund
41. The money an investor receives above and beyond the sum of money initially invested
return
Landlord
emergency fund
co-signing a loan
42. Items you need to survive ex: food - water
needs
Federal Open Market Committee (FOMC)
wants
debit card
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
short term debt
tips for using credit wisely
Federal Deposit Insurance Corporation (FDIC)
budget
44. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
chapter 7
Federal Reserve System (FED)
variable expenses
3 major credit bureaus
45. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
New York Stock Exchange (NYSE)
wants
Pay Yourself First (PYF)
short term goals
46. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
Annual percentage rate (APR)
tax deferred
chapter 13
collateral
47. A fixed charge for borrowing money
3 major credit bureaus
interest
factors that affect your income
mutual funds (MF)
48. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
factors that affect a mortgage
Annual percentage rate (APR)
tips for a successful budget
return
49. Formula used to calculate how many years it would take to double an investment
inflation
co-signing a loan
things that affect loans
Rule of 72
50. Investment that pools money from many investors to invest in stocks - bonds and other securities
factors that affect your income
insurance
mutual funds (MF)
discretionary income