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