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Personality Type or Psychological Type are terms most commonly associated with the model of personality development created by Isabel Briggs Myers, the author of the world's most widely used personality inventory, the MBTI or Myers-Briggs Type Indicator®. Myers and her mother, Katharine Briggs, developed their model and inventory around the ideas and theories of psychologist Carl Jung, a contemporary of Sigmund Freud and a leading exponent of Gestalt personality theory.

Beginning in the early 1940's, Myers & Briggs extended Jung's model with the initial development of the MBTI. They put Jung's concepts into language that could be understood and used by the average person.

A MBTI Test would help a person to identify and choose four dichotomies which are preferred by an individual

 
Extraversion v/s Introversion : this identifies the energy flow ie. Outward on inward
   
Sensing v/s Intuition: They indicate how a person prefers to receive data from the environment around him
   
Thinking v/s Feeling: They are used to make rational decisions concerning the data they received from their perceiving functions, above.
   
Judging v/s. Perceiving. It shows how people relate to the world around them in an orderly or spontaneous manner
 
The permutations of these four preference dichotomies result in the 16 personality types (Eg. ENTP, ESFP, INTJ, etc) that form the basis of Myers' model and the MBTI inventory.
 
Knowing your type would help you in understanding your
 
Strengths
   
Career and work preferences
   
Stress indicators
   
Decision making styles
   
Wealth strategy
   
Relationship issues with your team/spouse
   
Communication styles
   
Selling styles
 
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