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