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. 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.






2. Financial organization that specializes in automobile loans to consumers






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






4. A claim upon property to satisy a debt






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






6. Interest rates are effective annual yields






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






8. An interest rate that does not change






9. 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






10. 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.






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






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






13. A payment required for not fulfilling a contract






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






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






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






17. Yearly percmet amount it will cost a person to use credit






18. A loan that is repaid with a fixed number of periodic equal-sized payments






19. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest






20. 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.






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






22. 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.






23. 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






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






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






26. Taking away property due to failure to repay the debt






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






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






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






30. An evaluation of a person's credit history






31. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt






32. 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






33. Minimum amount due on credit balance






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






35. Puchasing more than your budget allows






36. The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive






37. 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.






38. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period






39. Provides individuals with revolving open-end credit - which they can draw from repeatedly up to some preset limit






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






41. Failure to repay a debt






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






43. Capacity - character and collateral

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






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






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






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






48. 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






49. 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






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