Test your basic knowledge |

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. Means that the APR can go up or down depending on economic factors






2. One large loan made to consumers to pay several debts at once






3. Home owners can borrow against the appraised value of their already purchased homes






4. Loans for which the borrower is required to pledge specific assets as collateral or security






5. A long-term loan extended to someone who buys property






6. Legal process that allows someone deeply in debt to create a plan to repay their debts






7. As related to credit - an evaluatin of a person's net worth






8. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor






9. An evaluation of a person's credit history






10. Debt that has been incurred primarily for the purchase of consumer goods






11. Provided a temporary loan at a high interest rate until your next paycheck






12. When someone with strong established credit signs a contract along with the borrower






13. Is a loan that does not require collateral from the borrower






14. 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.






15. A card used for making payments; balance must be paid in full when the statement is received






16. An interest rate that moves up and down based on the changes of an underlying interest rate index






17. 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






18. A payment required for not fulfilling a contract






19. Provides individuals with revolving open-end credit - which they can draw from repeatedly up to some preset limit






20. A numerical rating based on person's credit history that represents their credit worthiness






21. Interest rates are effective annual yields






22. The act of lending money at an interest rate higher than that permitted by law






23. 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






24. Financial organization that specializes in automobile loans to consumers






25. Yearly percmet amount it will cost a person to use credit






26. The maximum amount of credit a lender will extend to a customer






27. Taking away property due to failure to repay the debt






28. A nonprofit agency that gives free advice to people in financial difficulties






29. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt






30. A period in which a debt may be paid without accruing further interest or penalty






31. Minimum amount due on credit balance






32. A report showing all accumulated credit data on an individual; This is used for granting or denying credit






33. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)






34. 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






35. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest






36. 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.






37. 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.






38. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.






39. The price a borrow pays a creditor for the use of money over a period of time






40. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit






41. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.






42. 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






43. 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






44. The date on which a financial obligation must be repaid






45. A record of whether or not a person has paid his or her bills on time in the past






46. Aa financial institution that accepts deposits and channels the money into lending activities






47. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income






48. A penalty for making a payment after the due date






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






50. 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