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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. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
variable interest
late fee
pawn shops
penalty
2. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.
mortgage brokers
finance charge
consumer debt
title for goods
3. The total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums
grace period
finance charge
mortgage brokers
late fee
4. An evaluation of a person's credit history
lien
credit card companies
PIN (personal identification number)
credit rating
5. A record of whether or not a person has paid his or her bills on time in the past
credit history
Consumer Credit Counseling Services (CCCS)
line of credit
credit report
6. An interest rate that moves up and down based on the changes of an underlying interest rate index
payday loans
bankruptcy
tax preparers
variable interest
7. Capacity - character and collateral
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8. A penalty for making a payment after the due date
interest (APR)
due date
bankruptcy
late fee
9. 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
variable interest
overspending
lien
10. Failure to repay a debt
default
finance charge
variable interest
usury
11. 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
variable interest
revolving credit
late fee
balance owed
12. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
payday loans
bankruptcy Chapter 7
garnishment
credit limit
13. 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
variable interest
home equity loans
co-signed loans
cash advances
14. The right to hold - possess - control and dispose of property
predatory lending
garnishment
ownership
tax preparers
15. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest
credit card companies
bankruptcy
installment loans/credit
default
16. 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.
minimum payment
fixed rate of interest
payday loans
predatory lending
17. As related to credit - an evaluatin of a person's net worth
late fee
collateral
fixed rate of interest
3 C's of credit
18. The price a borrow pays a creditor for the use of money over a period of time
interest (APR)
mortgage
credit limit
variable rate
19. Puchasing more than your budget allows
Consumer Credit Counseling Services (CCCS)
overspending
co-signed loans
finance charge
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
usury
installment loans/credit
bankruptcy Chapter 11
pawn shops
21. Taking away property due to failure to repay the debt
consumer debt
debtors anonymous
repossession
APR (Annual Percentage Rate)
22. A long-term loan extended to someone who buys property
ownership
auto finance companies
mortgage
bankruptcy Chapter 13
23. 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
collateral
pawn shops
balance owed
overspending
24. Loans for which the borrower is required to pledge specific assets as collateral or security
minimum payment
identity theft
prepayment
secured loans
25. The act of lending money at an interest rate higher than that permitted by law
usury
credit reporting agency
secured loans
due date
26. The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
foreclosure
identity theft
bank
payday loans
27. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.
home equity loans
bankruptcy
secured credit card
prepayment
28. Means that the APR can go up or down depending on economic factors
PIN (personal identification number)
variable rate
mortgage
Truth in Lending Act of 1968
29. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit
credit cards
minimum payment
liquidation
foreclosure
30. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period
repossession
balance owed
line of credit
variable interest
31. Aa financial institution that accepts deposits and channels the money into lending activities
bank
mortgage
bankruptcy
bankruptcy Chapter 13
32. One large loan made to consumers to pay several debts at once
liquidation
secured loans
consolidation loans
fixed interest rate
33. Provides individuals with revolving open-end credit - which they can draw from repeatedly up to some preset limit
liquidation
credit reporting agency
bank
credit cards
34. Debt that has been incurred primarily for the purchase of consumer goods
identity theft
consumer debt
collateral
bankruptcy Chapter 13
35. Is a loan that does not require collateral from the borrower
bankruptcy Chapter 13
consolidation loans
unsecured loans
balance owed
36. The maximum amount of credit a lender will extend to a customer
credit rating
repossession
minimum payment
credit limit
37. One that requires you to keep a savings account as security
secured credit card
variable interest
mortgage
late fee
38. A number you choose and use to identify themselves to gain access to various accounts
bankruptcy Chapter 7
home equity loans
unsecured loans
PIN (personal identification number)
39. Yearly percmet amount it will cost a person to use credit
usury
3 C's of credit
due date
APR (Annual Percentage Rate)
40. Provided a temporary loan at a high interest rate until your next paycheck
foreclosure
usury
payday loans
liquidation
41. 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.
installment loans/credit
overspending
balance owed
low credit rating
42. A claim upon property to satisy a debt
tax preparers
garnishment
lien
minimum amount due
43. A loan that is repaid with a fixed number of periodic equal-sized payments
installment loans/credit
minimum amount due
auto finance companies
secured loans
44. 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
finance charge
mortgage brokers
Truth in Lending Act of 1968
debtors anonymous
45. Financial organization that specializes in automobile loans to consumers
ownership
bank
line of credit
auto finance companies
46. A legal document that provides a history of ownership and entitlement by the current owner
title for goods
minimum amount due
variable interest
consumer debt
47. 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
debtors anonymous
Truth in Lending Act of 1968
variable interest
co-signed loans
48. When someone with strong established credit signs a contract along with the borrower
APR (Annual Percentage Rate)
revolving credit
co-signed loans
usury
49. A nonprofit agency that gives free advice to people in financial difficulties
fixed interest rate
late fee
grace period
Consumer Credit Counseling Services (CCCS)
50. The date on which a financial obligation must be repaid
default
auto finance companies
credit card companies
due date