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