DSST Personal Finance Exam

If you understand the basics of personal finance and want to receive college credit for what you already know, the might be right for you.

Every adult needs to have a firm grip on personal finance concepts such as credit, debt, taxes, and so on. If you are just starting out in early adulthood as a college student, it is a good idea to go ahead and take the full course at your university. But maybe you grew up in a financially aware home or have been an adult long enough to understand fully how to manage your own finances. If this is the case, you may want to make an appointment with your academic advisor to see whether your college or university accepts DSST exams. You advisor will also discuss whether the DSST Personal Finance exam is right for your academic career.

To study for the exam, you should check out a DSST Personal Finance exam study guide, which provides a detailed outline of what will appear on the exam.

The DSST Personal Finance exam covers these seven broad topics, from the angle of individual money management:

  1. Foundations
  2. Credit and Debt
  3. Major Purchases
  4. Taxes
  5. Insurance
  6. Investments
  7. Retirement and Estate Planning

In addition to the DSST Personal Finance study guide, you may also want to check out some common personal finance reference books.

DSST Personal Finance Practice Questions

1. Which of the following is a financial goal?

A. Subscribing to the Wall Street Journal
B. Taking a long vacation
C. Buying a smart phone
D. Going out to dinner

2. Real property:

A. is like a 1954 Thunderbird
B. is a new dishwasher
C. is easily moved
D. has a relatively long life

3. A personal balance sheet lists:

A. impending expenses
B. assets minus debts owned
C. benefits from a company pension plan
D. financial performance over time

4. The Financial Modernization Act of 1999:

A. was passed to reduce the long term impact of inflation on economic growth
B. reduced the role of the Federal Government in financial planning
C. was legislated to protect personal financial information held by financial institutions
D. is also known as the Gramm-Leach Act

5. Time value of money can be defined as:

A. the concept that a dollar today is worth more than a dollar at some future time
B. the monetary growth amount that will be earned over a given period of time
C. monetary growth caused by compounding interest
D. a depository financial institution

6. Which of the following is a credit danger sign?

A. Getting a debit card
B. Opening checking and savings accounts
C. Using a credit card or cash advance to pay off other debts
D. Avoiding paying cash for large purchases

7. You can build a strong credit history by:

A. paying off a loan very quickly
B. notifying a lender when you are unable to make a payment
C. exceeding an overdraft protection line
D. deducting the interest on a home equity credit line

8. Which of the following is a way to avoid credit problems?

A. Reduce the number of credit cards you carry
B. Accept every pre-approved card offer you receive
C. Apply for an affinity card
D. Go to www.bankrate.com

9. You can reduce your chances of being a victim of credit card fraud by:

A. transferring balances to a card with a low introductory rate
B. letting a store clerk make extra copies of a sales/charge slip
C. applying for a line of credit
D. not putting your telephone number on a sales/charge slip

10. Besides charging interest on bank credit cards, banks may also charge a (an):

A. Fair Isaac & Co. fee
B. account activity summary
C. over-the-limit fee
D. Wage Earner Plan

DSST Personal Finance Practice Questions Answer Key

 

Last Updated: June 4, 2019