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