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