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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. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period
pawn shops
grace period
line of credit
usury
2. One large loan made to consumers to pay several debts at once
balance owed
tax preparers
consolidation loans
credit report
3. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.
low credit rating
prepayment
consolidation loans
credit cards
4. Minimum amount due on credit balance
ownership
repossession
APR (Annual Percentage Rate)
minimum payment
5. Failure to repay a debt
credit rating
default
line of credit
credit score
6. The maximum amount of credit a lender will extend to a customer
title for goods
credit limit
credit rating
Consumer Credit Counseling Services (CCCS)
7. One that requires you to keep a savings account as security
home equity loans
secured credit card
credit limit
Truth in Lending Act of 1968
8. 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
minimum amount due
APR (Annual Percentage Rate)
cash advances
credit card companies
9. Financial organization that specializes in automobile loans to consumers
line of credit
home equity loans
prepayment
auto finance companies
10. Taking away property due to failure to repay the debt
charge cards
credit history
repossession
ownership
11. A period in which a debt may be paid without accruing further interest or penalty
credit reporting agency
variable interest
grace period
debtors anonymous
12. 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
credit reporting agency
co-signed loans
pawn shops
13. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income
auto finance companies
bankruptcy Chapter 11
bankruptcy Chapter 13
credit card companies
14. Capacity - character and collateral
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15. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest
mortgage
balance owed
credit card companies
charge cards
16. 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
secured credit card
co-signed loans
bankruptcy Chapter 11
finance charge
17. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
tax preparers
secured loans
garnishment
credit history
18. An interest rate that moves up and down based on the changes of an underlying interest rate index
charge cards
consumer debt
variable interest
garnishment
19. A loan that is repaid with a fixed number of periodic equal-sized payments
installment loans/credit
pawn shops
home equity loans
credit report
20. The act of lending money at an interest rate higher than that permitted by law
default
revolving credit
usury
low credit rating
21. An interest rate that does not change
auto finance companies
grace period
bankruptcy Chapter 11
fixed interest rate
22. A penalty for making a payment after the due date
late fee
credit cards
foreclosure
secured loans
23. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.
fixed rate of interest
secured credit card
mortgage brokers
overspending
24. The price a borrow pays a creditor for the use of money over a period of time
credit rating
interest (APR)
credit cards
revolving credit
25. A report showing all accumulated credit data on an individual; This is used for granting or denying credit
title for goods
credit report
usury
charge cards
26. 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 Chapter 7
tax preparers
ownership
charge cards
27. A claim upon property to satisy a debt
tax preparers
usury
lien
prepayment
28. A long-term loan extended to someone who buys property
variable rate
mortgage
late fee
cash advances
29. A nonprofit agency that gives free advice to people in financial difficulties
bankruptcy Chapter 11
home equity loans
lien
Consumer Credit Counseling Services (CCCS)
30. The total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums
finance charge
late fee
credit score
unsecured loans
31. Loans for which the borrower is required to pledge specific assets as collateral or security
secured loans
bankruptcy Chapter 7
fixed rate of interest
Consumer Credit Counseling Services (CCCS)
32. Debt that has been incurred primarily for the purchase of consumer goods
home equity loans
fixed rate of interest
fixed interest rate
consumer debt
33. A payment required for not fulfilling a contract
foreclosure
credit score
charge cards
penalty
34. As related to credit - an evaluatin of a person's net worth
collateral
debtors anonymous
balance owed
mortgage
35. Is a loan that does not require collateral from the borrower
variable rate
unsecured loans
liquidation
secured credit card
36. Yearly percmet amount it will cost a person to use credit
interest (APR)
home equity loans
APR (Annual Percentage Rate)
charge cards
37. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt
credit limit
credit card companies
foreclosure
mortgage brokers
38. The right to hold - possess - control and dispose of property
predatory lending
credit limit
ownership
credit reporting agency
39. 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
predatory lending
revolving credit
co-signed loans
credit cards
40. 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
secured loans
revolving credit
variable interest
balance owed
41. Legal process that allows someone deeply in debt to create a plan to repay their debts
tax preparers
bankruptcy
finance charge
revolving credit
42. Home owners can borrow against the appraised value of their already purchased homes
3 C's of credit
consolidation loans
predatory lending
home equity loans
43. 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.
mortgage
credit reporting agency
grace period
line of credit
44. The date on which a financial obligation must be repaid
debtors anonymous
variable rate
garnishment
due date
45. Means that the APR can go up or down depending on economic factors
variable rate
co-signed loans
charge cards
grace period
46. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit
default
charge cards
bank
liquidation
47. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
liquidation
auto finance companies
PIN (personal identification number)
pawn shops
48. 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
payday loans
home equity loans
balance owed
debtors anonymous
49. Puchasing more than your budget allows
overspending
credit card companies
bankruptcy
balance owed
50. 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
cash advances
foreclosure
Truth in Lending Act of 1968
APR (Annual Percentage Rate)