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