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