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






2. Capacity - character and collateral

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






4. 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






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






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






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






8. 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






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






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






11. 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






12. An interest rate that does not change






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






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






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






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






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






18. An evaluation of a person's credit history






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






20. Puchasing more than your budget allows






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






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






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






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






25. 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.






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






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






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






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






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






32. Failure to repay a debt






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






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






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






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






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






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






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






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






41. Minimum amount due on credit balance






42. Interest rates are effective annual yields






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






44. 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.






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






46. 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.






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






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






49. 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.






50. 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