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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. One that requires you to keep a savings account as security
bankruptcy Chapter 13
secured credit card
consolidation loans
installment loans/credit
2. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.
debtors anonymous
mortgage brokers
unsecured loans
finance charge
3. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
lien
default
pawn shops
garnishment
4. Capacity - character and collateral
5. Legal process that allows someone deeply in debt to create a plan to repay their debts
bankruptcy
foreclosure
credit score
bankruptcy Chapter 7
6. The right to hold - possess - control and dispose of property
minimum amount due
ownership
cash advances
PIN (personal identification number)
7. Means that the APR can go up or down depending on economic factors
balance owed
usury
predatory lending
variable rate
8. The total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums
balance owed
lien
cash advances
finance charge
9. Loans for which the borrower is required to pledge specific assets as collateral or security
variable rate
secured loans
bankruptcy
revolving credit
10. Is a loan that does not require collateral from the borrower
unsecured loans
penalty
interest (APR)
PIN (personal identification number)
11. 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.
minimum payment
predatory lending
collateral
credit score
12. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income
repossession
balance owed
bankruptcy Chapter 13
charge cards
13. Yearly percmet amount it will cost a person to use credit
APR (Annual Percentage Rate)
predatory lending
bank
liquidation
14. An interest rate that does not change
pawn shops
finance charge
fixed interest rate
Truth in Lending Act of 1968
15. 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
bankruptcy Chapter 13
revolving credit
installment loans/credit
identity theft
16. Provided a temporary loan at a high interest rate until your next paycheck
payday loans
grace period
bankruptcy Chapter 7
minimum payment
17. An evaluation of a person's credit history
credit rating
unsecured loans
interest (APR)
due date
18. A report showing all accumulated credit data on an individual; This is used for granting or denying credit
APR (Annual Percentage Rate)
default
credit report
consumer debt
19. Aa financial institution that accepts deposits and channels the money into lending activities
debtors anonymous
tax preparers
Truth in Lending Act of 1968
bank
20. A claim upon property to satisy a debt
lien
minimum amount due
ownership
line of credit
21. 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
overspending
bank
interest (APR)
Truth in Lending Act of 1968
22. Home owners can borrow against the appraised value of their already purchased homes
3 C's of credit
bankruptcy Chapter 13
home equity loans
payday loans
23. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest
identity theft
lien
credit card companies
line of credit
24. The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
identity theft
consumer debt
secured credit card
interest (APR)
25. 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.
collateral
PIN (personal identification number)
low credit rating
credit rating
26. 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.
cash advances
credit report
credit limit
credit reporting agency
27. Minimum amount due on credit balance
low credit rating
minimum payment
secured credit card
liquidation
28. When someone with strong established credit signs a contract along with the borrower
cash advances
co-signed loans
fixed rate of interest
bankruptcy Chapter 7
29. A long-term loan extended to someone who buys property
mortgage
PIN (personal identification number)
mortgage brokers
3 C's of credit
30. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
bankruptcy
title for goods
pawn shops
collateral
31. A penalty for making a payment after the due date
balance owed
line of credit
late fee
credit limit
32. A period in which a debt may be paid without accruing further interest or penalty
credit card companies
PIN (personal identification number)
credit score
grace period
33. Provides individuals with revolving open-end credit - which they can draw from repeatedly up to some preset limit
collateral
bankruptcy Chapter 13
credit cards
interest (APR)
34. As related to credit - an evaluatin of a person's net worth
penalty
collateral
credit card companies
co-signed loans
35. 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
prepayment
default
installment loans/credit
cash advances
36. A legal document that provides a history of ownership and entitlement by the current owner
bankruptcy Chapter 7
title for goods
lien
ownership
37. Interest rates are effective annual yields
fixed rate of interest
overspending
predatory lending
finance charge
38. 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
debtors anonymous
credit cards
ownership
consumer debt
39. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt
foreclosure
predatory lending
cash advances
overspending
40. The date on which a financial obligation must be repaid
default
variable interest
ownership
due date
41. Puchasing more than your budget allows
auto finance companies
bank
home equity loans
overspending
42. The price a borrow pays a creditor for the use of money over a period of time
prepayment
fixed interest rate
late fee
interest (APR)
43. The maximum amount of credit a lender will extend to a customer
interest (APR)
credit reporting agency
credit limit
repossession
44. Failure to repay a debt
default
secured loans
bankruptcy Chapter 13
overspending
45. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit
prepayment
payday loans
minimum payment
liquidation
46. 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
secured loans
3 C's of credit
credit limit
47. A numerical rating based on person's credit history that represents their credit worthiness
predatory lending
credit score
debtors anonymous
Truth in Lending Act of 1968
48. An interest rate that moves up and down based on the changes of an underlying interest rate index
Truth in Lending Act of 1968
garnishment
bankruptcy Chapter 13
variable interest
49. A record of whether or not a person has paid his or her bills on time in the past
credit history
auto finance companies
variable interest
foreclosure
50. 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.
bankruptcy Chapter 7
revolving credit
mortgage
credit reporting agency