Test your basic knowledge |

Credit Management

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. A pre-established amount that can be borrowed on demand with no collateral






2. A legal process that allows part of your paycheck to be withheld for payment of a debt






3. The interest rate lenders offer to their best business customers






4. A loan for a specific amount that must be repaid in full - including all finance charges - by a stated due date






5. 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






6. An itemized bill showing charges - credit - and payments posted to your account during the billing period






7. Debts erased by the court during bankruptcy proceedings






8. The ideals in life that are important to you and affect your decision making






9. A written statement of a consumer's credit history issued by a credit bureau to its business subscribers






10. Loans for which the interest rate does not change (up or down) over the life of the loan






11. A measure of credit-worthiness based on an analysis of a consumer's financial history






12. The cost of credit expressed as a yearly percentage






13. A legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay






14. The remaining credit available to you; calculated as your credit limit minus the amount you have already spent






15. A person who actively promotes consumer causes






16. The percentage charged for the use of money






17. A responsible attitude toward living up to agreements






18. Interest computed on the amount borrowed only without compounding






19. The intentional misrepresentation of information with the intent to deceive or mislead






20. 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






21. The amount borrowed - or the unpaid portion of the amount borrowed - on which the borrower pays interest






22. A loan that is not backed by pledged assets






23. Treating people differently based on prejudice rather than individual merit






24. A company that gathers - stores - and sells credit information to business subscribers






25. The total dollar amount of all interest and fees you pay for the use of credit






26. A shopping method that enables consumers to determine whether they are getting the best quality for the price






27. The length of time the borrower will take to repay a loan; expressed as a fraction of a year






28. Property possessed that is worth more than debts owed






29. Property pledged to a creditor to assure repayment of a loan






30. The ability to repay a loan with present income






31. A person who promises in writing to repay a promissory note if the maker fails to pay






32. Ingredients necessary for maintaining physical life






33. Money borrowed to buy something now with an agreement to pay for it later






34. The value of your next best alternative whenever you make a choice






35. An agreement to have a service performed now and pay for it later






36. The complete record of your borrowing and repayment performance






37. Small loan companies that usually charge high interest rates






38. A part of the purchase price paid in cash up front - reducing the amount of a loan






39. A person who owes money to others