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






2. 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.






3. A payment required for not fulfilling a contract






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






5. Puchasing more than your budget allows






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






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






8. An interest rate that does not change






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






10. 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.






11. Financial organization that specializes in automobile loans to consumers






12. 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.






13. A report showing all accumulated credit data on an individual; This is used for granting or denying credit






14. An evaluation of a person's credit history






15. A period in which a debt may be paid without accruing further interest or penalty






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






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






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






19. The date on which a financial obligation must be repaid






20. Failure to repay a debt






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






22. 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.






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






24. Interest rates are effective annual yields






25. 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






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






27. 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






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






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






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






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






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






33. Minimum amount due on credit balance






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






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






36. 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






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






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






39. 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.






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






41. 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






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






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






44. 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






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






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






47. A claim upon property to satisy a debt






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






49. Capacity - character and collateral


50. 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