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