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