Test your basic knowledge |

DSST Personal Finance 2

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 fixed charge for borrowing money






2. Goal in which you plan to prepare for and reach in the distant future - over 5 years






3. 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






4. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage






5. Goal in which you plan to reach in the near future - one year or less






6. Items you need to survive ex: food - water






7. Using computers to carry out transfers of money






8. The total earnings paid to an employee after payroll taxes and other deductions






9. The possibility for loss on an investment






10. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.






11. The increase in price of goods and services






12. A way to guarantee your financial protection against various risks






13. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)






14. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account






15. Protects you from the probability that injury - damage or loss will occur






16. Can be profitable - liquid






17. Risky






18. Regulates banks - makes short term loans to banks - conducts monetary policy






19. The desire of a good or service






20. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses






21. The money an investor receives above and beyond the sum of money initially invested






22. Pursues payments on debts owed by individuals or businesses






23. 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.


24. Equifax - Experian - TransUnion






25. The total amount of an employee's earnings before deductions are taken out






26. Account to help you save money and earn a small amount of interest at the same time






27. You are being paid for it (ex: investment)






28. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property






29. Ability to convert to cash and maintain value






30. Responsible for their own personal belongings in the case of an event like fire - water damage






31. Stocks that pay low dividends - but are expected to grow






32. The portion of corporate profits paid out to stockholders






33. Source of information in determining a fair price for a vehicle - new or used






34. A log of the financial habits of a person who buys on credit.






35. Spreading out investments to reduce risk






36. To borrow money from a bank to purchase an item and pay for it over time






37. 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.






38. Interest paid on the principal alone (I=p x r x t)






39. Expenses that change from month to month






40. Debts due within the next year (ex: loans - credit cards)






41. Interest rates - length of time to borrow money






42. Allows pay back of debt with more time - court oversees repayment of plan






43. Set costs that must be paid such as rent - insurance - and car payments






44. 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.






45. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default






46. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States






47. 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






48. The money left to spend or save after taxes have been paid






49. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange






50. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter