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 penalty for making a payment after the due date






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






3. An evaluation of a person's credit history






4. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.






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






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






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






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






9. Interest rates are effective annual yields






10. An interest rate that does not change






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






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






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






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






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






16. 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






17. Puchasing more than your budget allows






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






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






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






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






22. 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.






23. 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






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






25. Failure to repay a debt






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






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






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






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






30. Minimum amount due on credit balance






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






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






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






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






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






36. Capacity - character and collateral


37. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.






38. 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






39. 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.






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






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






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






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






44. 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






45. Financial organization that specializes in automobile loans to consumers






46. A payment required for not fulfilling a contract






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






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






49. A claim upon property to satisy a debt






50. A legal document that provides a history of ownership and entitlement by the current owner