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