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