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. Interest rates are effective annual yields






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






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






4. Puchasing more than your budget allows






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






6. 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.






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






8. Provided a temporary loan at a high interest rate until your next paycheck






9. 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






10. 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






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






12. 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.






13. Minimum amount due on credit balance






14. 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.






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






16. An evaluation of a person's credit history






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






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






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






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






21. 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






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






23. Failure to repay a debt






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






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






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






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






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. A claim upon property to satisy a debt






30. 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.






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






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






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






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






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






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






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






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






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






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






41. Financial organization that specializes in automobile loans to consumers






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






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






44. 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






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






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






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






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






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






50. 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