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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. Financial organization that specializes in automobile loans to consumers
PIN (personal identification number)
auto finance companies
unsecured loans
pawn shops
2. Debt that has been incurred primarily for the purchase of consumer goods
mortgage
consumer debt
variable rate
consolidation loans
3. 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.
lien
3 C's of credit
low credit rating
PIN (personal identification number)
4. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
repossession
pawn shops
bankruptcy Chapter 7
credit cards
5. As related to credit - an evaluatin of a person's net worth
bankruptcy Chapter 11
low credit rating
collateral
pawn shops
6. The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
low credit rating
bankruptcy Chapter 13
default
identity theft
7. Provides individuals with revolving open-end credit - which they can draw from repeatedly up to some preset limit
credit cards
ownership
pawn shops
credit report
8. An evaluation of a person's credit history
bank
credit cards
repossession
credit rating
9. If the consumer makes the minimum payment - interest charges continue to accrue on all outstanding balances.
charge cards
ownership
minimum amount due
credit history
10. Capacity - character and collateral
11. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.
prepayment
credit score
fixed interest rate
penalty
12. One large loan made to consumers to pay several debts at once
credit reporting agency
credit rating
line of credit
consolidation loans
13. Is a loan that does not require collateral from the borrower
unsecured loans
credit history
liquidation
Truth in Lending Act of 1968
14. A payment required for not fulfilling a contract
tax preparers
title for goods
penalty
minimum payment
15. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest
credit card companies
liquidation
3 C's of credit
payday loans
16. The price a borrow pays a creditor for the use of money over a period of time
title for goods
installment loans/credit
foreclosure
interest (APR)
17. 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
revolving credit
minimum payment
finance charge
bankruptcy Chapter 13
18. A legal document that provides a history of ownership and entitlement by the current owner
credit limit
lien
title for goods
credit rating
19. Legal process that allows someone deeply in debt to create a plan to repay their debts
grace period
consolidation loans
bankruptcy
garnishment
20. A nonprofit agency that gives free advice to people in financial difficulties
grace period
secured credit card
Consumer Credit Counseling Services (CCCS)
cash advances
21. A record of whether or not a person has paid his or her bills on time in the past
identity theft
credit history
finance charge
co-signed loans
22. A claim upon property to satisy a debt
payday loans
minimum payment
3 C's of credit
lien
23. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period
credit report
charge cards
line of credit
lien
24. Home owners can borrow against the appraised value of their already purchased homes
credit score
home equity loans
auto finance companies
predatory lending
25. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.
bankruptcy Chapter 7
PIN (personal identification number)
mortgage brokers
mortgage
26. 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.
bankruptcy
fixed rate of interest
revolving credit
tax preparers
27. 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
finance charge
fixed interest rate
mortgage
bankruptcy Chapter 11
28. 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.
credit score
bankruptcy
bankruptcy Chapter 7
fixed rate of interest
29. Means that the APR can go up or down depending on economic factors
credit score
ownership
variable rate
APR (Annual Percentage Rate)
30. Minimum amount due on credit balance
usury
cash advances
minimum payment
PIN (personal identification number)
31. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit
cash advances
finance charge
liquidation
collateral
32. 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
Truth in Lending Act of 1968
minimum payment
credit reporting agency
PIN (personal identification number)
33. The maximum amount of credit a lender will extend to a customer
credit limit
variable rate
bank
payday loans
34. A loan that is repaid with a fixed number of periodic equal-sized payments
payday loans
credit score
low credit rating
installment loans/credit
35. Yearly percmet amount it will cost a person to use credit
debtors anonymous
bankruptcy Chapter 7
tax preparers
APR (Annual Percentage Rate)
36. Provided a temporary loan at a high interest rate until your next paycheck
payday loans
grace period
interest (APR)
credit reporting agency
37. Aa financial institution that accepts deposits and channels the money into lending activities
low credit rating
bank
finance charge
credit cards
38. The date on which a financial obligation must be repaid
bankruptcy Chapter 7
foreclosure
credit limit
due date
39. When someone with strong established credit signs a contract along with the borrower
3 C's of credit
co-signed loans
credit history
tax preparers
40. 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
payday loans
default
bankruptcy Chapter 7
41. 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
due date
credit history
debtors anonymous
bankruptcy Chapter 11
42. A card used for making payments; balance must be paid in full when the statement is received
home equity loans
debtors anonymous
charge cards
credit limit
43. Puchasing more than your budget allows
credit cards
overspending
usury
secured credit card
44. A report showing all accumulated credit data on an individual; This is used for granting or denying credit
payday loans
home equity loans
credit report
lien
45. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
low credit rating
bankruptcy Chapter 7
garnishment
finance charge
46. A number you choose and use to identify themselves to gain access to various accounts
PIN (personal identification number)
late fee
credit cards
grace period
47. A long-term loan extended to someone who buys property
bankruptcy Chapter 13
debtors anonymous
mortgage
lien
48. 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
installment loans/credit
predatory lending
balance owed
secured loans
49. A numerical rating based on person's credit history that represents their credit worthiness
cash advances
liquidation
credit score
tax preparers
50. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income
Consumer Credit Counseling Services (CCCS)
secured loans
line of credit
bankruptcy Chapter 13