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