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. Failure to repay a debt






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






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






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






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






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






7. A payment required for not fulfilling a contract






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






9. 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.






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






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






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






13. An interest rate that does not change






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






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






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






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






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






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






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 amount left over after subtracting - as - for example - the amount owed on a loan (also called principal balance) or the amount in an account






22. Minimum amount due on credit balance






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






24. Interest rates are effective annual yields






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






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






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






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






29. 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.






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






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






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






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






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






35. As related to credit - an evaluatin of a person's net worth






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






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






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






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






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






41. Capacity - character and collateral


42. 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






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






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






45. 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.






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






47. A claim upon property to satisy a debt






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






49. An evaluation of a person's credit history






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