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Test your basic knowledge |
Credit
Start Test
Study First
Subject
:
personal-finance
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. Provided a temporary loan at a high interest rate until your next paycheck
consumer debt
tax preparers
minimum amount due
payday loans
2. A number you choose and use to identify themselves to gain access to various accounts
foreclosure
PIN (personal identification number)
consolidation loans
revolving credit
3. Interest rates are effective annual yields
minimum payment
credit limit
bank
fixed rate of interest
4. A numerical rating based on person's credit history that represents their credit worthiness
garnishment
unsecured loans
credit score
usury
5. Home owners can borrow against the appraised value of their already purchased homes
bankruptcy
home equity loans
garnishment
finance charge
6. A card used for making payments; balance must be paid in full when the statement is received
charge cards
payday loans
consumer debt
predatory lending
7. Puchasing more than your budget allows
predatory lending
secured loans
overspending
usury
8. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period
repossession
identity theft
line of credit
title for goods
9. A period in which a debt may be paid without accruing further interest or penalty
fixed rate of interest
grace period
secured credit card
line of credit
10. A nonprofit agency that gives free advice to people in financial difficulties
credit rating
Consumer Credit Counseling Services (CCCS)
APR (Annual Percentage Rate)
auto finance companies
11. Provides a uniform manner of calculating and presenting the terms of consumer loans to enable you to compare costs so you can make informed choices about credit
due date
Truth in Lending Act of 1968
finance charge
Consumer Credit Counseling Services (CCCS)
12. Capacity - character and collateral
13. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.
3 C's of credit
bankruptcy Chapter 11
prepayment
late fee
14. Is a loan that does not require collateral from the borrower
bank
unsecured loans
fixed rate of interest
credit limit
15. A report showing all accumulated credit data on an individual; This is used for granting or denying credit
credit report
garnishment
credit reporting agency
credit cards
16. A legal document that provides a history of ownership and entitlement by the current owner
title for goods
credit cards
liquidation
auto finance companies
17. Money lent: a loan given in cash - especially by an employer or credit card company - in anticipation of the borrower's being able to repay it
cash advances
variable rate
revolving credit
secured loans
18. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
repossession
garnishment
variable interest
PIN (personal identification number)
19. A company that collects information from various sources and provides consumer credit information on individual consumers for a variety of uses. It is an organization providing information on individuals' borrowing and bill paying habits.
title for goods
credit reporting agency
minimum payment
identity theft
20. Financial organization that specializes in automobile loans to consumers
credit history
auto finance companies
Truth in Lending Act of 1968
minimum amount due
21. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.
minimum payment
Truth in Lending Act of 1968
mortgage brokers
identity theft
22. Means that the APR can go up or down depending on economic factors
finance charge
variable rate
home equity loans
bank
23. The total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums
variable rate
tax preparers
finance charge
unsecured loans
24. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt
variable interest
Consumer Credit Counseling Services (CCCS)
foreclosure
credit history
25. If the consumer makes the minimum payment - interest charges continue to accrue on all outstanding balances.
finance charge
bankruptcy
minimum amount due
bankruptcy Chapter 11
26. Aa financial institution that accepts deposits and channels the money into lending activities
foreclosure
debtors anonymous
mortgage
bank
27. Dealing with liquidation - provides for a court-appointed interim trustee to make management changes - arrange unsecured financing - and generally operate the debtor business to prevent loss.
bank
overspending
bankruptcy Chapter 7
revolving credit
28. The maximum amount of credit a lender will extend to a customer
secured credit card
liquidation
foreclosure
credit limit
29. A payment required for not fulfilling a contract
predatory lending
due date
penalty
Truth in Lending Act of 1968
30. A record of whether or not a person has paid his or her bills on time in the past
credit limit
PIN (personal identification number)
credit history
lien
31. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit
secured credit card
fixed rate of interest
liquidation
fixed interest rate
32. A credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off - it becomes available again to use for another purchase or cash advance
variable interest
credit rating
revolving credit
variable rate
33. When someone with strong established credit signs a contract along with the borrower
low credit rating
co-signed loans
collateral
credit card companies
34. Failure to repay a debt
default
minimum payment
APR (Annual Percentage Rate)
finance charge
35. A long-term loan extended to someone who buys property
bank
credit score
mortgage
liquidation
36. The act of lending money at an interest rate higher than that permitted by law
pawn shops
usury
credit card companies
fixed interest rate
37. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
late fee
consolidation loans
credit card companies
pawn shops
38. Legal process that allows someone deeply in debt to create a plan to repay their debts
co-signed loans
credit history
bankruptcy Chapter 7
bankruptcy
39. A loan that is repaid with a fixed number of periodic equal-sized payments
minimum payment
finance charge
installment loans/credit
title for goods
40. The right to hold - possess - control and dispose of property
garnishment
credit card companies
ownership
secured credit card
41. The date on which a financial obligation must be repaid
bankruptcy Chapter 7
bank
foreclosure
due date
42. One that requires you to keep a savings account as security
revolving credit
installment loans/credit
secured credit card
late fee
43. A penalty for making a payment after the due date
finance charge
late fee
predatory lending
bankruptcy Chapter 7
44. As related to credit - an evaluatin of a person's net worth
collateral
garnishment
PIN (personal identification number)
secured credit card
45. A claim upon property to satisy a debt
bank
lien
mortgage
low credit rating
46. Use their knowledge of federal - state - and local tax codes and publications to prepare tax returns and make sure that their clients do not pay unnecessary taxes.
bankruptcy Chapter 13
tax preparers
credit limit
mortgage brokers
47. Is a fellowship of men and women who share their experience - strength - and hope with each other that they may solve their common problem and help others to recover from compulsive debting. The only requirement for membership is a desire to stop inc
credit reporting agency
revolving credit
debtors anonymous
default
48. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest
fixed rate of interest
credit card companies
pawn shops
low credit rating
49. One large loan made to consumers to pay several debts at once
bankruptcy Chapter 7
consolidation loans
liquidation
credit report
50. An evaluation of a person's credit history
credit rating
variable rate
prepayment
cash advances