Test your basic knowledge |

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 process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit






2. Is a loan that does not require collateral from the borrower






3. A card used for making payments; balance must be paid in full when the statement is received






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






5. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.






6. Minimum amount due on credit balance






7. The maximum amount of credit a lender will extend to a customer






8. A payment required for not fulfilling a contract






9. A loan that is repaid with a fixed number of periodic equal-sized payments






10. Legal process that allows someone deeply in debt to create a plan to repay their debts






11. Means that the APR can go up or down depending on economic factors






12. 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






13. Interest rates are effective annual yields






14. Puchasing more than your budget allows






15. 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






16. A numerical rating based on person's credit history that represents their credit worthiness






17. Provides individuals with revolving open-end credit - which they can draw from repeatedly up to some preset limit






18. 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






19. A claim upon property to satisy a debt






20. The date on which a financial obligation must be repaid






21. If the consumer makes the minimum payment - interest charges continue to accrue on all outstanding balances.






22. When someone with strong established credit signs a contract along with the borrower






23. Taking away property due to failure to repay the debt






24. One large loan made to consumers to pay several debts at once






25. 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






26. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt






27. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor






28. 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.






29. 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.






30. The right to hold - possess - control and dispose of property






31. Failure to repay a debt






32. Capacity - character and collateral

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33. As related to credit - an evaluatin of a person's net worth






34. Debt that has been incurred primarily for the purchase of consumer goods






35. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income






36. The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive






37. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest






38. A report showing all accumulated credit data on an individual; This is used for granting or denying credit






39. Home owners can borrow against the appraised value of their already purchased homes






40. 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.






41. The act of lending money at an interest rate higher than that permitted by law






42. A long-term loan extended to someone who buys property






43. 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.






44. The price a borrow pays a creditor for the use of money over a period of time






45. Yearly percmet amount it will cost a person to use credit






46. A nonprofit agency that gives free advice to people in financial difficulties






47. Loans for which the borrower is required to pledge specific assets as collateral or security






48. A number you choose and use to identify themselves to gain access to various accounts






49. The total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums






50. A period in which a debt may be paid without accruing further interest or penalty