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