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