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