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






2. Minimum amount due on credit balance






3. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)






4. 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.






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






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






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






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






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






10. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.






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






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






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






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






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






16. A penalty for making a payment after the due date






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






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






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






20. Financial organization that specializes in automobile loans to consumers






21. Failure to repay a debt






22. 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






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






24. 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.






25. 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






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






27. An evaluation of a person's credit history






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






29. One that requires you to keep a savings account as security






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






31. 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.






32. An interest rate that does not change






33. The maximum amount of credit a lender will extend to a customer






34. Capacity - character and collateral


35. Puchasing more than your budget allows






36. Interest rates are effective annual yields






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






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 date on which a financial obligation must be repaid






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






41. 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.






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






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






44. 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






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






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






47. The act of lending money at an interest rate higher than that permitted by law






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






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






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