Test your basic knowledge |

Subject : personal-finance
Instructions:
  • Answer 50 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 process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit






2. The price a borrow pays a creditor for the use of money over a period of time






3. Interest rates are effective annual yields






4. As related to credit - an evaluatin of a person's net worth






5. Dealing with liquidation - provides for a court-appointed interim trustee to make management changes - arrange unsecured financing - and generally operate the debtor business to prevent loss.






6. An evaluation of a person's credit history






7. Is a loan that does not require collateral from the borrower






8. A credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off - it becomes available again to use for another purchase or cash advance






9. A nonprofit agency that gives free advice to people in financial difficulties






10. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.






11. A card used for making payments; balance must be paid in full when the statement is received






12. One that requires you to keep a savings account as security






13. Home owners can borrow against the appraised value of their already purchased homes






14. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income






15. A payment required for not fulfilling a contract






16. Any of a number of fraudulent - deceptive - discriminatory - or unfavorable lending practices. Many of these practices are illegal - while others are legal but not in the best interest of the borrowers.






17. A record of whether or not a person has paid his or her bills on time in the past






18. Provided a temporary loan at a high interest rate until your next paycheck






19. Aa financial institution that accepts deposits and channels the money into lending activities






20. Financial organization that specializes in automobile loans to consumers






21. The act of lending money at an interest rate higher than that permitted by law






22. Minimum amount due on credit balance






23. A penalty for making a payment after the due date






24. A number you choose and use to identify themselves to gain access to various accounts






25. The date on which a financial obligation must be repaid






26. An interest rate that does not change






27. A period in which a debt may be paid without accruing further interest or penalty






28. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)






29. When someone with strong established credit signs a contract along with the borrower






30. If the consumer makes the minimum payment - interest charges continue to accrue on all outstanding balances.






31. A company that collects information from various sources and provides consumer credit information on individual consumers for a variety of uses. It is an organization providing information on individuals' borrowing and bill paying habits.






32. Deals with reorganization of businesses - provides that - unless the court rules otherwise - the debtor remains in possession of the business and in control of its operation






33. Legal process that allows someone deeply in debt to create a plan to repay their debts






34. A claim upon property to satisy a debt






35. Is a fellowship of men and women who share their experience - strength - and hope with each other that they may solve their common problem and help others to recover from compulsive debting. The only requirement for membership is a desire to stop inc






36. An interest rate that moves up and down based on the changes of an underlying interest rate index






37. A legal document that provides a history of ownership and entitlement by the current owner






38. A long-term loan extended to someone who buys property






39. The maximum amount of credit a lender will extend to a customer






40. Capacity - character and collateral


41. A report showing all accumulated credit data on an individual; This is used for granting or denying credit






42. Debt that has been incurred primarily for the purchase of consumer goods






43. The right to hold - possess - control and dispose of property






44. Loans for which the borrower is required to pledge specific assets as collateral or security






45. A credit rating around 500 or lower is high enough risk that many lenders will refuse a line of credit - and those that do grant one will penalize the borrower with high interest rates and difficult terms.






46. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor






47. The total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums






48. Use their knowledge of federal - state - and local tax codes and publications to prepare tax returns and make sure that their clients do not pay unnecessary taxes.






49. Means that the APR can go up or down depending on economic factors






50. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.