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