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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. Enforces securities laws and regulates the securities industry
Landlord
Securities and Exchange Commission (SEC)
reasons not to invest in stocks
Federal Open Market Committee (FOMC)
2. 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.
reasons to invest in stocks
co-signing a loan
credit report
Pay Yourself First (PYF)
3. High-priced common stocks that have been strong - profitable stocks for a long period of time.
gross pay
blue chip stocks
simple interest
wants
4. Debts due within the next year (ex: loans - credit cards)
things that affect loans
reasons not to invest in stocks
insurance
short term debt
5. Responsible for their own personal belongings in the case of an event like fire - water damage
Dow Jones
simple interest
Tenant
reasons not to invest in stocks
6. Regulates banks - makes short term loans to banks - conducts monetary policy
wants
Federal Reserve System (FED)
compound interest
net pay
7. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
interest
Landlord
things that affect loans
tax deferred
8. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
Truth in Lending Act
chapter 7
Kelley Blue Book
things that affect loans
9. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
emergency fund
tips for a successful budget
return
discretionary income
10. Agree to be responsible for loan payments if the other person can't make them
reasons not to invest in stocks
co-signing a loan
Federal Reserve System (FED)
fixed expenses
11. Can be profitable - liquid
reasons to invest in stocks
gross pay
supply
CPI's relation to inflation
12. 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.
needs
types of risk
simple interest
Law of Supply and Demand
13. A fixed charge for borrowing money
risk
needs
interest
compound interest
14. Protects depository institution accounts - incures commercial banks and savings and loan
Federal Deposit Insurance Corporation (FDIC)
return
diversification
factors that affect your income
15. Pursues payments on debts owed by individuals or businesses
National Association of Securities Dealers Automated Quotations (NASDAQ)
bankruptcy
collection agency or debt collector
variable expenses
16. The value of buying one item over another
things that affect loans
wants
opportunity cost
blue chip stocks
17. The money left to spend or save after taxes have been paid
disposable income
debit card
net pay
interest can benefit you when...
18. You are being paid for it (ex: investment)
electronic banking
credit report
interest can benefit you when...
opportunity cost
19. Lenders must disclose all costs of credit
short term debt
CPI's relation to inflation
Truth in Lending Act
needs
20. Interest rates - length of time to borrow money
growth stocks
Securities and Exchange Commission (SEC)
things that affect loans
interest can be bad for you when....
21. Goal in which you plan to prepare for and reach in the distant future - over 5 years
interest
Dow Jones
Law of Supply and Demand
long term goals
22. A log of the financial habits of a person who buys on credit.
inflation
simple interest
credit record
Truth in Lending Act
23. Spreading out investments to reduce risk
diversification
return
Federal Deposit Insurance Corporation (FDIC)
Dow Jones
24. Source of information in determining a fair price for a vehicle - new or used
gross pay
Federal Deposit Insurance Corporation (FDIC)
tax deferred
Kelley Blue Book
25. Carefully planned - practical - flexible - written and accessible
factors that affect your income
tips for a successful budget
National Association of Securities Dealers Automated Quotations (NASDAQ)
interest can benefit you when...
26. Using computers to carry out transfers of money
variable expenses
inflation
electronic banking
Law of Supply and Demand
27. Account to help you save money and earn a small amount of interest at the same time
savings account
inflation
Kelley Blue Book
credit record
28. The increase in price of goods and services
inflation
growth stocks
diversification
budget
29. 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
return
wants
debit card
diversification
30. Ability to convert to cash and maintain value
liquidity
things that affect loans
short term goals
interest can benefit you when...
31. To borrow money from a bank to purchase an item and pay for it over time
3 major credit bureaus
financing an item
Securities and Exchange Commission (SEC)
Truth in Lending Act
32. Investment that pools money from many investors to invest in stocks - bonds and other securities
demand
Pay Yourself First (PYF)
interest can be bad for you when....
mutual funds (MF)
33. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
Landlord
New York Stock Exchange (NYSE)
growth stocks
Annual percentage rate (APR)
34. The total earnings paid to an employee after payroll taxes and other deductions
Securities and Exchange Commission (SEC)
net pay
reasons to invest in stocks
National Association of Securities Dealers Automated Quotations (NASDAQ)
35. Set costs that must be paid such as rent - insurance - and car payments
collection agency or debt collector
fixed expenses
savings account
growth stocks
36. Items you need to survive ex: food - water
variable expenses
fixed expenses
disposable income
needs
37. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
Truth in Lending Act
mutual funds (MF)
wants
Dow Jones
38. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
CPI's relation to inflation
chapter 7
demand
factors that affect a mortgage
39. You owe money (ex: credit card - loan)
3 major credit bureaus
reasons not to invest in stocks
long term goals
interest can be bad for you when....
40. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
chapter 13
Federal Open Market Committee (FOMC)
reasons not to invest in stocks
short term goals
41. Stocks that pay low dividends - but are expected to grow
Landlord
growth stocks
bankruptcy
emergency fund
42. Salary - wages - interest - campital gains - commission
New York Stock Exchange (NYSE)
tips for using credit wisely
factors that affect your income
fixed expenses
43. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
factors that affect a mortgage
how insurance is related to risk management
reasons not to invest in stocks
discretionary income
44. The total amount of an employee's earnings before deductions are taken out
growth stocks
gross pay
wants
compound interest
45. Only responsible for the building and the property in the case of an event like fire - water damage
needs
credit report
Landlord
3 major credit bureaus
46. The money an investor receives above and beyond the sum of money initially invested
blue chip stocks
disposable income
return
long term goals
47. Equifax - Experian - TransUnion
blue chip stocks
bankruptcy
3 major credit bureaus
Federal Deposit Insurance Corporation (FDIC)
48. The possibility for loss on an investment
Federal Open Market Committee (FOMC)
risk
certificate of deposit or CD
insurance
49. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
collateral
emergency fund
National Association of Securities Dealers Automated Quotations (NASDAQ)
Federal Open Market Committee (FOMC)
50. 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
Federal Deposit Insurance Corporation (FDIC)
tips for using credit wisely
certificate of deposit or CD
Dow Jones