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