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