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