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Test your basic knowledge |
Credit Management
Start Test
Study First
Subject
:
personal-finance
Instructions:
Answer 39 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. The remaining credit available to you; calculated as your credit limit minus the amount you have already spent
Debtor
Principal
Bankruptcy
Unused credit
2. The interest rate lenders offer to their best business customers
Unused credit
Credit bureau
Prime rate
Interest rate
3. The length of time the borrower will take to repay a loan; expressed as a fraction of a year
Service credit
Time
Bankruptcy
Credit history
4. A company that gathers - stores - and sells credit information to business subscribers
Interest rate
Credit bureau
Open-ended credit
Annual percentage rate (APR)
5. A written statement of a consumer's credit history issued by a credit bureau to its business subscribers
Credit report
20/10 rule
Credit history
Fraud
6. The intentional misrepresentation of information with the intent to deceive or mislead
Down payment
Collateral
Character
Fraud
7. An agreement to have a service performed now and pay for it later
Service credit
Principal
Credit
Values
8. Debts erased by the court during bankruptcy proceedings
Service credit
Annual percentage rate (APR)
Unused credit
Discharged debts
9. The percentage charged for the use of money
20/10 rule
Time
Interest rate
Credit rating
10. A measure of credit-worthiness based on an analysis of a consumer's financial history
Fixed-rate loans
Values
Finance companies
Credit rating
11. Loans for which the interest rate does not change (up or down) over the life of the loan
nsecured debt
Credit history
Credit
Fixed-rate loans
12. A loan for a specific amount that must be repaid in full - including all finance charges - by a stated due date
Co-signer
Capital
Closed-ended credit
Statement
13. The ideals in life that are important to you and affect your decision making
Statement
Discharged debts
Values
Consumer advocate
14. A legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay
Co-signer
Credit bureau
Bankruptcy
Debtor
15. Money borrowed to buy something now with an agreement to pay for it later
Bankruptcy
Open-ended credit
Down payment
Credit
16. Property pledged to a creditor to assure repayment of a loan
Character
Collateral
Credit
Consumer advocate
17. Small loan companies that usually charge high interest rates
Credit bureau
nsecured debt
20/10 rule
Finance companies
18. A pre-established amount that can be borrowed on demand with no collateral
Debtor
Values
Line of credit
Finance companies
19. Treating people differently based on prejudice rather than individual merit
Discharged debts
Finance companies
Discrimination
Capital
20. Property possessed that is worth more than debts owed
Comparison shopping
Bankruptcy
Debtor
Capital
21. An agreement to lend the borrower an amount up to a stated limit and to allow borrowing up to that limit again whenever the balance falls below the limit
Open-ended credit
Credit report
Annual percentage rate (APR)
Discharged debts
22. A person who promises in writing to repay a promissory note if the maker fails to pay
Consumer advocate
Co-signer
Principal
Credit history
23. The amount borrowed - or the unpaid portion of the amount borrowed - on which the borrower pays interest
Co-signer
Statement
Principal
Opportunity cost
24. Ingredients necessary for maintaining physical life
Credit rating
Needs
Annual percentage rate (APR)
Closed-ended credit
25. The cost of credit expressed as a yearly percentage
Fixed-rate loans
Collateral
Annual percentage rate (APR)
Interest rate
26. A part of the purchase price paid in cash up front - reducing the amount of a loan
Simple interest
Credit history
Down payment
Capital
27. An itemized bill showing charges - credit - and payments posted to your account during the billing period
Closed-ended credit
Simple interest
Open-ended credit
Statement
28. The total dollar amount of all interest and fees you pay for the use of credit
Capacity
Credit history
Principal
Finance charge
29. Interest computed on the amount borrowed only without compounding
20/10 rule
Values
Simple interest
Garnishment
30. A loan that is not backed by pledged assets
Co-signer
Collateral
nsecured debt
Finance companies
31. The value of your next best alternative whenever you make a choice
Opportunity cost
Finance companies
Statement
Simple interest
32. The complete record of your borrowing and repayment performance
Values
Credit report
Collateral
Credit history
33. A shopping method that enables consumers to determine whether they are getting the best quality for the price
Credit history
Comparison shopping
Credit rating
nsecured debt
34. A person who actively promotes consumer causes
Closed-ended credit
Bankruptcy
Consumer advocate
Co-signer
35. A responsible attitude toward living up to agreements
Principal
Comparison shopping
Character
Credit report
36. Your total borrowing should not exceed 20 percent of your yearly take-home pay - and you should not take on monthly payments that total more than 10 percent of your monthly take-home pay
Credit rating
20/10 rule
Down payment
Principal
37. The ability to repay a loan with present income
Capacity
Credit
Line of credit
Finance charge
38. A person who owes money to others
Debtor
Finance charge
Needs
Fixed-rate loans
39. A legal process that allows part of your paycheck to be withheld for payment of a debt
Finance companies
Garnishment
Credit history
Simple interest