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Test your basic knowledge |
Credit
Start Test
Study First
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. Means that the APR can go up or down depending on economic factors
variable rate
fixed interest rate
bankruptcy
bankruptcy Chapter 13
2. 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.
ownership
predatory lending
tax preparers
lien
3. Is a loan that does not require collateral from the borrower
unsecured loans
PIN (personal identification number)
foreclosure
consumer debt
4. The amount left over after subtracting - as - for example - the amount owed on a loan (also called principal balance) or the amount in an account
balance owed
credit reporting agency
credit report
credit rating
5. A penalty for making a payment after the due date
late fee
lien
penalty
credit card companies
6. Minimum amount due on credit balance
3 C's of credit
variable rate
line of credit
minimum payment
7. Interest rates are effective annual yields
low credit rating
liquidation
fixed rate of interest
credit score
8. Money lent: a loan given in cash - especially by an employer or credit card company - in anticipation of the borrower's being able to repay it
cash advances
ownership
credit reporting agency
variable interest
9. Puchasing more than your budget allows
overspending
bankruptcy Chapter 13
home equity loans
foreclosure
10. The right to hold - possess - control and dispose of property
ownership
secured loans
grace period
unsecured loans
11. Failure to repay a debt
default
APR (Annual Percentage Rate)
due date
Truth in Lending Act of 1968
12. A number you choose and use to identify themselves to gain access to various accounts
PIN (personal identification number)
auto finance companies
minimum amount due
bankruptcy Chapter 7
13. A record of whether or not a person has paid his or her bills on time in the past
bankruptcy Chapter 13
credit history
unsecured loans
repossession
14. 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.
fixed interest rate
lien
mortgage brokers
credit reporting agency
15. The total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums
collateral
low credit rating
minimum payment
finance charge
16. 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.
bankruptcy Chapter 7
prepayment
bankruptcy
PIN (personal identification number)
17. Yearly percmet amount it will cost a person to use credit
variable rate
APR (Annual Percentage Rate)
grace period
secured loans
18. Loans for which the borrower is required to pledge specific assets as collateral or security
credit history
consolidation loans
secured loans
mortgage
19. 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
consumer debt
overspending
PIN (personal identification number)
bankruptcy Chapter 11
20. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
APR (Annual Percentage Rate)
balance owed
garnishment
pawn shops
21. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
repossession
pawn shops
tax preparers
credit reporting agency
22. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period
line of credit
credit history
bankruptcy
fixed rate of interest
23. Taking away property due to failure to repay the debt
pawn shops
repossession
mortgage brokers
default
24. 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
pawn shops
revolving credit
installment loans/credit
Consumer Credit Counseling Services (CCCS)
25. Provides individuals with revolving open-end credit - which they can draw from repeatedly up to some preset limit
consolidation loans
credit cards
Consumer Credit Counseling Services (CCCS)
variable interest
26. A report showing all accumulated credit data on an individual; This is used for granting or denying credit
bankruptcy Chapter 13
finance charge
PIN (personal identification number)
credit report
27. The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
due date
identity theft
title for goods
credit cards
28. Home owners can borrow against the appraised value of their already purchased homes
home equity loans
finance charge
title for goods
variable rate
29. When someone with strong established credit signs a contract along with the borrower
credit history
mortgage brokers
co-signed loans
bankruptcy
30. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.
lien
home equity loans
fixed interest rate
prepayment
31. A nonprofit agency that gives free advice to people in financial difficulties
collateral
debtors anonymous
variable rate
Consumer Credit Counseling Services (CCCS)
32. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt
tax preparers
foreclosure
variable interest
title for goods
33. Financial organization that specializes in automobile loans to consumers
auto finance companies
secured loans
collateral
debtors anonymous
34. The maximum amount of credit a lender will extend to a customer
finance charge
bank
credit limit
debtors anonymous
35. A legal document that provides a history of ownership and entitlement by the current owner
foreclosure
title for goods
balance owed
credit card companies
36. Provides a uniform manner of calculating and presenting the terms of consumer loans to enable you to compare costs so you can make informed choices about credit
cash advances
predatory lending
Truth in Lending Act of 1968
low credit rating
37. A payment required for not fulfilling a contract
debtors anonymous
identity theft
penalty
tax preparers
38. An evaluation of a person's credit history
credit rating
mortgage brokers
foreclosure
credit cards
39. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income
tax preparers
PIN (personal identification number)
bankruptcy Chapter 13
repossession
40. As related to credit - an evaluatin of a person's net worth
collateral
low credit rating
mortgage
co-signed loans
41. If the consumer makes the minimum payment - interest charges continue to accrue on all outstanding balances.
credit score
revolving credit
minimum amount due
minimum payment
42. A long-term loan extended to someone who buys property
charge cards
mortgage
debtors anonymous
balance owed
43. A loan that is repaid with a fixed number of periodic equal-sized payments
credit score
PIN (personal identification number)
ownership
installment loans/credit
44. The act of lending money at an interest rate higher than that permitted by law
consumer debt
cash advances
repossession
usury
45. An interest rate that does not change
bankruptcy
lien
foreclosure
fixed interest rate
46. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest
balance owed
credit rating
debtors anonymous
credit card companies
47. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit
liquidation
penalty
debtors anonymous
revolving credit
48. Capacity - character and collateral
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49. One large loan made to consumers to pay several debts at once
consolidation loans
credit limit
revolving credit
collateral
50. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.
mortgage brokers
variable interest
liquidation
fixed interest rate