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