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