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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 way to guarantee your financial protection against various risks
insurance
Law of Supply and Demand
Tenant
liquidity
2. 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
time value of money
demand
New York Stock Exchange (NYSE)
insurance
3. Spreading out investments to reduce risk
gross pay
diversification
credit report
fixed expenses
4. Investment that pools money from many investors to invest in stocks - bonds and other securities
mutual funds (MF)
collateral
Truth in Lending Act
growth stocks
5. Salary - wages - interest - campital gains - commission
CPI's relation to inflation
things that affect loans
factors that affect your income
factors that affect a mortgage
6. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
chapter 7
savings account
National Association of Securities Dealers Automated Quotations (NASDAQ)
7. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
variable expenses
Dow Jones
collection agency or debt collector
simple interest
8. Only responsible for the building and the property in the case of an event like fire - water damage
Landlord
how insurance is related to risk management
Federal Deposit Insurance Corporation (FDIC)
factors that affect a mortgage
9. Lenders must disclose all costs of credit
emergency fund
Truth in Lending Act
long term goals
3 major credit bureaus
10. Formula used to calculate how many years it would take to double an investment
interest can benefit you when...
Tenant
Rule of 72
short term debt
11. Risky
reasons not to invest in stocks
disposable income
wants
budget
12. 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.
types of risk
Kelley Blue Book
financing an item
credit report
13. 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
time value of money
blue chip stocks
Federal Open Market Committee (FOMC)
tips for using credit wisely
14. Interest paid on the principal alone (I=p x r x t)
simple interest
CPI's relation to inflation
things that affect loans
electronic banking
15. Goal in which you plan to prepare for and reach in the distant future - over 5 years
short term goals
risk
long term goals
discretionary income
16. The money left to spend or save after taxes have been paid
budget
supply
Truth in Lending Act
disposable income
17. Income risk - personal risk - liquidity risk - interest rate risk
types of risk
interest
tax deferred
growth stocks
18. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
tips for a successful budget
growth stocks
National Association of Securities Dealers Automated Quotations (NASDAQ)
opportunity cost
19. Goal in which you plan to reach in the near future - one year or less
tips for using credit wisely
Annual percentage rate (APR)
short term goals
co-signing a loan
20. 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
electronic banking
Dow Jones
bankruptcy
co-signing a loan
21. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
chapter 7
reasons to invest in stocks
collection agency or debt collector
budget
22. The money an investor receives above and beyond the sum of money initially invested
3 major credit bureaus
return
things that affect loans
Federal Deposit Insurance Corporation (FDIC)
23. The portion of corporate profits paid out to stockholders
Rule of 72
dividend
inflation
things that affect loans
24. 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
things that affect loans
supply
credit report
25. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
factors that affect a mortgage
reasons not to invest in stocks
certificate of deposit or CD
Law of Supply and Demand
26. Using computers to carry out transfers of money
how insurance is related to risk management
disposable income
wants
electronic banking
27. Source of information in determining a fair price for a vehicle - new or used
interest
factors that affect your income
types of risk
Kelley Blue Book
28. Expenses that change from month to month
credit record
disposable income
long term goals
variable expenses
29. Can be profitable - liquid
reasons to invest in stocks
3 major credit bureaus
things that affect loans
National Association of Securities Dealers Automated Quotations (NASDAQ)
30. Equifax - Experian - TransUnion
3 major credit bureaus
wants
variable expenses
net pay
31. A fixed charge for borrowing money
CPI's relation to inflation
diversification
interest
opportunity cost
32. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
Kelley Blue Book
Annual percentage rate (APR)
opportunity cost
tips for using credit wisely
33. Carefully planned - practical - flexible - written and accessible
tips for a successful budget
Pay Yourself First (PYF)
certificate of deposit or CD
reasons to invest in stocks
34. Enforces securities laws and regulates the securities industry
Pay Yourself First (PYF)
Securities and Exchange Commission (SEC)
wants
interest
35. Interest rates - length of time to borrow money
collateral
things that affect loans
discretionary income
Landlord
36. Items you need to survive ex: food - water
blue chip stocks
types of risk
wants
needs
37. 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.
38. The increase in price of goods and services
tips for a successful budget
inflation
Landlord
mutual funds (MF)
39. The value of buying one item over another
Kelley Blue Book
opportunity cost
Tenant
interest can be bad for you when....
40. Allows pay back of debt with more time - court oversees repayment of plan
variable expenses
savings account
chapter 13
growth stocks
41. The total earnings paid to an employee after payroll taxes and other deductions
net pay
demand
mutual funds (MF)
short term debt
42. Protects you from the probability that injury - damage or loss will occur
how insurance is related to risk management
dividend
tips for a successful budget
variable expenses
43. Items for enjoyment ex: eating out - entertainment - luxury items
time value of money
wants
things that affect loans
Securities and Exchange Commission (SEC)
44. The desire of a good or service
factors that affect a mortgage
demand
variable expenses
credit record
45. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
credit report
mutual funds (MF)
Pay Yourself First (PYF)
needs
46. Debts due within the next year (ex: loans - credit cards)
variable expenses
demand
short term debt
interest can be bad for you when....
47. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
Securities and Exchange Commission (SEC)
discretionary income
dividend
Landlord
48. A plan for managing your money for a given period of time
fixed expenses
budget
liquidity
short term goals
49. The total amount of an employee's earnings before deductions are taken out
chapter 13
Securities and Exchange Commission (SEC)
gross pay
Pay Yourself First (PYF)
50. A log of the financial habits of a person who buys on credit.
liquidity
credit record
discretionary income
how insurance is related to risk management