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






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






3. 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






4. 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.






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






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






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






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






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






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






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






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






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






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






15. A claim upon property to satisy a debt






16. A numerical rating based on person's credit history that represents their credit worthiness






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






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






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






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






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






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






23. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit






24. 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






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






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






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






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






29. Minimum amount due on credit balance






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






31. 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






32. Financial organization that specializes in automobile loans to consumers






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






34. An interest rate that does not change






35. Failure to repay a debt






36. A payment required for not fulfilling a contract






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






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






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






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






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






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






44. An evaluation of a person's credit history






45. Interest rates are effective annual yields






46. 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






47. 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






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






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






50. One large loan made to consumers to pay several debts at once