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. 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.






2. A payment required for not fulfilling a contract






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






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






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






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






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






8. Interest rates are effective annual yields






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






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






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






12. An interest rate that does not change






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






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






15. Failure to repay a debt






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






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






18. Capacity - character and collateral


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






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






21. Financial organization that specializes in automobile loans to consumers






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






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






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






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






26. 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.






27. Home owners can borrow against the appraised value of their already purchased homes






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






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






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






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






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






33. 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






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






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






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






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






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






39. 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






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






41. 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






42. An evaluation of a person's credit history






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






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






45. 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






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






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






48. 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






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






50. Minimum amount due on credit balance