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