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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. The price a borrow pays a creditor for the use of money over a period of time
low credit rating
consumer debt
interest (APR)
fixed interest rate
2. Is a loan that does not require collateral from the borrower
overspending
bankruptcy
unsecured loans
home equity loans
3. Interest rates are effective annual yields
unsecured loans
low credit rating
fixed rate of interest
credit rating
4. The total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums
finance charge
fixed interest rate
credit score
PIN (personal identification number)
5. A number you choose and use to identify themselves to gain access to various accounts
Consumer Credit Counseling Services (CCCS)
debtors anonymous
predatory lending
PIN (personal identification number)
6. The right to hold - possess - control and dispose of property
repossession
ownership
lien
garnishment
7. 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
payday loans
3 C's of credit
auto finance companies
8. The maximum amount of credit a lender will extend to a customer
grace period
line of credit
3 C's of credit
credit limit
9. Provides individuals with revolving open-end credit - which they can draw from repeatedly up to some preset limit
credit cards
title for goods
consumer debt
minimum payment
10. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit
home equity loans
penalty
liquidation
low credit rating
11. 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
penalty
debtors anonymous
bankruptcy Chapter 7
fixed interest rate
12. The date on which a financial obligation must be repaid
tax preparers
due date
usury
default
13. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt
foreclosure
credit limit
consumer debt
APR (Annual Percentage Rate)
14. A numerical rating based on person's credit history that represents their credit worthiness
credit score
liquidation
bankruptcy Chapter 7
bankruptcy
15. A card used for making payments; balance must be paid in full when the statement is received
late fee
charge cards
repossession
finance charge
16. A claim upon property to satisy a debt
low credit rating
lien
revolving credit
mortgage brokers
17. A loan that is repaid with a fixed number of periodic equal-sized payments
bank
usury
installment loans/credit
home equity loans
18. Debt that has been incurred primarily for the purchase of consumer goods
debtors anonymous
consumer debt
garnishment
Consumer Credit Counseling Services (CCCS)
19. A nonprofit agency that gives free advice to people in financial difficulties
lien
line of credit
Consumer Credit Counseling Services (CCCS)
finance charge
20. 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
payday loans
auto finance companies
consumer debt
21. An evaluation of a person's credit history
3 C's of credit
mortgage brokers
minimum amount due
credit rating
22. A record of whether or not a person has paid his or her bills on time in the past
co-signed loans
credit history
minimum amount due
variable interest
23. Failure to repay a debt
credit limit
bankruptcy Chapter 7
default
secured loans
24. Taking away property due to failure to repay the debt
charge cards
late fee
Truth in Lending Act of 1968
repossession
25. One large loan made to consumers to pay several debts at once
collateral
revolving credit
consolidation loans
due date
26. Capacity - character and collateral
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27. 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.
liquidation
line of credit
predatory lending
Truth in Lending Act of 1968
28. A long-term loan extended to someone who buys property
3 C's of credit
balance owed
mortgage
APR (Annual Percentage Rate)
29. Puchasing more than your budget allows
overspending
bankruptcy Chapter 11
credit reporting agency
bankruptcy
30. 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
balance owed
credit cards
prepayment
revolving credit
31. 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
Consumer Credit Counseling Services (CCCS)
bankruptcy Chapter 13
balance owed
foreclosure
32. 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.
tax preparers
identity theft
penalty
lien
33. A legal document that provides a history of ownership and entitlement by the current owner
title for goods
ownership
credit report
credit rating
34. An interest rate that does not change
fixed interest rate
revolving credit
predatory lending
debtors anonymous
35. As related to credit - an evaluatin of a person's net worth
bankruptcy
credit cards
collateral
repossession
36. Financial organization that specializes in automobile loans to consumers
charge cards
predatory lending
garnishment
auto finance companies
37. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
tax preparers
bankruptcy Chapter 7
garnishment
penalty
38. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest
tax preparers
pawn shops
credit card companies
credit history
39. An interest rate that moves up and down based on the changes of an underlying interest rate index
unsecured loans
credit limit
variable interest
fixed rate of interest
40. One that requires you to keep a savings account as security
variable rate
credit score
secured credit card
lien
41. 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
predatory lending
overspending
secured credit card
cash advances
42. A payment required for not fulfilling a contract
penalty
collateral
title for goods
credit rating
43. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income
consolidation loans
bankruptcy Chapter 13
pawn shops
repossession
44. Legal process that allows someone deeply in debt to create a plan to repay their debts
co-signed loans
fixed interest rate
bankruptcy
revolving credit
45. A report showing all accumulated credit data on an individual; This is used for granting or denying credit
credit report
consumer debt
ownership
garnishment
46. Loans for which the borrower is required to pledge specific assets as collateral or security
overspending
bankruptcy Chapter 13
minimum payment
secured loans
47. Provided a temporary loan at a high interest rate until your next paycheck
payday loans
low credit rating
credit limit
interest (APR)
48. Home owners can borrow against the appraised value of their already purchased homes
home equity loans
garnishment
PIN (personal identification number)
credit card companies
49. The act of lending money at an interest rate higher than that permitted by law
3 C's of credit
APR (Annual Percentage Rate)
usury
identity theft
50. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.
payday loans
interest (APR)
mortgage brokers
due date