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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. Yearly percmet amount it will cost a person to use credit
variable interest
variable rate
APR (Annual Percentage Rate)
garnishment
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.
auto finance companies
secured credit card
collateral
bankruptcy Chapter 7
3. The act of lending money at an interest rate higher than that permitted by law
pawn shops
credit score
debtors anonymous
usury
4. Means that the APR can go up or down depending on economic factors
credit limit
line of credit
variable rate
grace period
5. A nonprofit agency that gives free advice to people in financial difficulties
APR (Annual Percentage Rate)
Consumer Credit Counseling Services (CCCS)
bank
credit rating
6. Taking away property due to failure to repay the debt
penalty
secured loans
repossession
Consumer Credit Counseling Services (CCCS)
7. A legal document that provides a history of ownership and entitlement by the current owner
bankruptcy Chapter 11
finance charge
title for goods
secured credit card
8. A long-term loan extended to someone who buys property
mortgage
bankruptcy
interest (APR)
APR (Annual Percentage Rate)
9. Provided a temporary loan at a high interest rate until your next paycheck
payday loans
collateral
overspending
debtors anonymous
10. Minimum amount due on credit balance
mortgage
minimum payment
credit cards
due date
11. A card used for making payments; balance must be paid in full when the statement is received
foreclosure
charge cards
fixed interest rate
bank
12. 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
APR (Annual Percentage Rate)
co-signed loans
Truth in Lending Act of 1968
bank
13. 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
credit cards
cash advances
liquidation
unsecured loans
14. One that requires you to keep a savings account as security
secured credit card
tax preparers
variable rate
finance charge
15. Capacity - character and collateral
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16. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.
prepayment
low credit rating
PIN (personal identification number)
fixed interest rate
17. Debt that has been incurred primarily for the purchase of consumer goods
consumer debt
overspending
secured credit card
collateral
18. An evaluation of a person's credit history
charge cards
credit limit
credit rating
APR (Annual Percentage Rate)
19. If the consumer makes the minimum payment - interest charges continue to accrue on all outstanding balances.
prepayment
mortgage brokers
minimum amount due
bank
20. A period in which a debt may be paid without accruing further interest or penalty
interest (APR)
default
grace period
predatory lending
21. Failure to repay a debt
repossession
due date
Truth in Lending Act of 1968
default
22. One large loan made to consumers to pay several debts at once
default
bankruptcy Chapter 7
consolidation loans
consumer debt
23. Financial organization that specializes in automobile loans to consumers
low credit rating
consumer debt
due date
auto finance companies
24. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period
credit card companies
liquidation
line of credit
Consumer Credit Counseling Services (CCCS)
25. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest
charge cards
credit card companies
variable rate
credit rating
26. 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
APR (Annual Percentage Rate)
tax preparers
secured credit card
debtors anonymous
27. A loan that is repaid with a fixed number of periodic equal-sized payments
lien
installment loans/credit
minimum amount due
default
28. The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
minimum amount due
prepayment
PIN (personal identification number)
identity theft
29. 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.
credit reporting agency
bankruptcy Chapter 13
late fee
predatory lending
30. An interest rate that moves up and down based on the changes of an underlying interest rate index
variable interest
credit cards
auto finance companies
mortgage
31. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt
bankruptcy
credit cards
foreclosure
home equity loans
32. When someone with strong established credit signs a contract along with the borrower
identity theft
mortgage brokers
co-signed loans
Truth in Lending Act of 1968
33. Loans for which the borrower is required to pledge specific assets as collateral or security
liquidation
secured loans
tax preparers
payday loans
34. A record of whether or not a person has paid his or her bills on time in the past
credit score
Truth in Lending Act of 1968
credit history
bank
35. A claim upon property to satisy a debt
mortgage
credit cards
lien
secured credit card
36. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit
predatory lending
prepayment
PIN (personal identification number)
liquidation
37. The price a borrow pays a creditor for the use of money over a period of time
bank
bankruptcy Chapter 7
interest (APR)
bankruptcy Chapter 13
38. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
bankruptcy
mortgage brokers
3 C's of credit
garnishment
39. 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.
predatory lending
identity theft
default
tax preparers
40. The date on which a financial obligation must be repaid
bankruptcy Chapter 11
bankruptcy Chapter 13
due date
payday loans
41. A numerical rating based on person's credit history that represents their credit worthiness
liquidation
garnishment
credit score
credit card companies
42. 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
liquidation
revolving credit
credit card companies
usury
43. A payment required for not fulfilling a contract
foreclosure
penalty
variable rate
usury
44. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income
bankruptcy Chapter 13
3 C's of credit
consumer debt
collateral
45. 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.
bankruptcy
charge cards
liquidation
tax preparers
46. The maximum amount of credit a lender will extend to a customer
prepayment
credit limit
consumer debt
overspending
47. 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
penalty
mortgage
bankruptcy Chapter 11
credit report
48. Aa financial institution that accepts deposits and channels the money into lending activities
home equity loans
finance charge
bank
credit cards
49. A penalty for making a payment after the due date
debtors anonymous
credit score
credit history
late fee
50. Legal process that allows someone deeply in debt to create a plan to repay their debts
credit history
bankruptcy
APR (Annual Percentage Rate)
bankruptcy Chapter 7