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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. Is a loan that does not require collateral from the borrower
unsecured loans
variable rate
overspending
foreclosure
2. Failure to repay a debt
predatory lending
penalty
debtors anonymous
default
3. Puchasing more than your budget allows
overspending
charge cards
debtors anonymous
credit score
4. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.
3 C's of credit
identity theft
credit limit
prepayment
5. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt
PIN (personal identification number)
mortgage brokers
secured loans
foreclosure
6. Provided a temporary loan at a high interest rate until your next paycheck
predatory lending
payday loans
penalty
secured credit card
7. One large loan made to consumers to pay several debts at once
repossession
default
overspending
consolidation loans
8. A penalty for making a payment after the due date
bankruptcy Chapter 7
overspending
late fee
revolving credit
9. Legal process that allows someone deeply in debt to create a plan to repay their debts
installment loans/credit
predatory lending
mortgage brokers
bankruptcy
10. 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.
fixed interest rate
credit reporting agency
overspending
identity theft
11. A report showing all accumulated credit data on an individual; This is used for granting or denying credit
title for goods
credit report
low credit rating
due date
12. The maximum amount of credit a lender will extend to a customer
credit limit
co-signed loans
mortgage brokers
credit reporting agency
13. A legal document that provides a history of ownership and entitlement by the current owner
balance owed
title for goods
late fee
unsecured loans
14. 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
predatory lending
grace period
credit score
15. The total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums
low credit rating
balance owed
credit card companies
finance charge
16. Minimum amount due on credit balance
co-signed loans
minimum payment
credit report
3 C's of credit
17. 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
title for goods
minimum payment
bankruptcy Chapter 11
grace period
18. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit
ownership
payday loans
repossession
liquidation
19. Interest rates are effective annual yields
penalty
credit report
fixed rate of interest
APR (Annual Percentage Rate)
20. An evaluation of a person's credit history
variable interest
credit rating
Truth in Lending Act of 1968
revolving credit
21. 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.
tax preparers
foreclosure
bankruptcy Chapter 7
secured loans
22. When someone with strong established credit signs a contract along with the borrower
credit limit
predatory lending
credit reporting agency
co-signed loans
23. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income
due date
foreclosure
minimum amount due
bankruptcy Chapter 13
24. A number you choose and use to identify themselves to gain access to various accounts
PIN (personal identification number)
penalty
fixed rate of interest
minimum payment
25. The right to hold - possess - control and dispose of property
bankruptcy Chapter 13
Truth in Lending Act of 1968
mortgage
ownership
26. Home owners can borrow against the appraised value of their already purchased homes
bankruptcy Chapter 7
tax preparers
lien
home equity loans
27. Debt that has been incurred primarily for the purchase of consumer goods
late fee
consumer debt
charge cards
title for goods
28. Capacity - character and collateral
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29. If the consumer makes the minimum payment - interest charges continue to accrue on all outstanding balances.
debtors anonymous
secured credit card
minimum amount due
mortgage brokers
30. Aa financial institution that accepts deposits and channels the money into lending activities
bank
Consumer Credit Counseling Services (CCCS)
credit cards
minimum amount due
31. Financial organization that specializes in automobile loans to consumers
3 C's of credit
Truth in Lending Act of 1968
tax preparers
auto finance companies
32. A record of whether or not a person has paid his or her bills on time in the past
interest (APR)
credit rating
secured loans
credit history
33. 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
finance charge
co-signed loans
overspending
Truth in Lending Act of 1968
34. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
overspending
bankruptcy
garnishment
auto finance companies
35. A payment required for not fulfilling a contract
credit history
penalty
credit reporting agency
balance owed
36. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period
fixed interest rate
minimum payment
3 C's of credit
line of credit
37. The act of lending money at an interest rate higher than that permitted by law
PIN (personal identification number)
garnishment
pawn shops
usury
38. A card used for making payments; balance must be paid in full when the statement is received
charge cards
garnishment
variable interest
overspending
39. The price a borrow pays a creditor for the use of money over a period of time
pawn shops
APR (Annual Percentage Rate)
PIN (personal identification number)
interest (APR)
40. The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
installment loans/credit
tax preparers
identity theft
debtors anonymous
41. The date on which a financial obligation must be repaid
auto finance companies
bank
credit score
due date
42. Yearly percmet amount it will cost a person to use credit
APR (Annual Percentage Rate)
cash advances
minimum amount due
Truth in Lending Act of 1968
43. An interest rate that does not change
fixed interest rate
credit cards
collateral
minimum payment
44. 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
balance owed
collateral
Consumer Credit Counseling Services (CCCS)
revolving credit
45. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
penalty
debtors anonymous
consumer debt
pawn shops
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.
credit score
fixed rate of interest
due date
low credit rating
47. A numerical rating based on person's credit history that represents their credit worthiness
overspending
consolidation loans
secured loans
credit score
48. An interest rate that moves up and down based on the changes of an underlying interest rate index
due date
credit report
consolidation loans
variable interest
49. As related to credit - an evaluatin of a person's net worth
auto finance companies
foreclosure
collateral
interest (APR)
50. A claim upon property to satisy a debt
minimum payment
lien
unsecured loans
overspending