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