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