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






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






3. 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.






4. Failure to repay a debt






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






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






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






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






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






10. A record of whether or not a person has paid his or her bills on time in the past






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






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






13. 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






14. A payment required for not fulfilling a contract






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






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






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






18. A penalty for making a payment after the due date






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






20. One that requires you to keep a savings account as security






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






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






23. 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.






24. 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






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






26. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period






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






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






29. An interest rate that does not change






30. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.






31. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)






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






33. An evaluation of a person's credit history






34. 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






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






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






37. An interest rate that moves up and down based on the changes of an underlying interest rate index






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






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






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. 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






42. A legal document that provides a history of ownership and entitlement by the current owner






43. Minimum amount due on credit balance






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






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






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






47. 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.






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






49. Aa financial institution that accepts deposits and channels the money into lending activities






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