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Test your basic knowledge |
Credit Management
Start Test
Study First
Subject
:
personal-finance
Instructions:
Answer 39 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 length of time the borrower will take to repay a loan; expressed as a fraction of a year
Time
Discharged debts
Values
Principal
2. The complete record of your borrowing and repayment performance
Credit history
Principal
Prime rate
Values
3. A company that gathers - stores - and sells credit information to business subscribers
Capital
nsecured debt
Principal
Credit bureau
4. Money borrowed to buy something now with an agreement to pay for it later
Discrimination
nsecured debt
Credit report
Credit
5. Property pledged to a creditor to assure repayment of a loan
Character
Unused credit
Comparison shopping
Collateral
6. The total dollar amount of all interest and fees you pay for the use of credit
Needs
Finance charge
Principal
Debtor
7. The ideals in life that are important to you and affect your decision making
Line of credit
Capacity
Statement
Values
8. A legal process that allows part of your paycheck to be withheld for payment of a debt
Discrimination
Line of credit
Capacity
Garnishment
9. A part of the purchase price paid in cash up front - reducing the amount of a loan
20/10 rule
Credit report
Down payment
Bankruptcy
10. A person who owes money to others
nsecured debt
Prime rate
Line of credit
Debtor
11. A pre-established amount that can be borrowed on demand with no collateral
Prime rate
Finance companies
Line of credit
nsecured debt
12. Interest computed on the amount borrowed only without compounding
Annual percentage rate (APR)
Principal
Simple interest
20/10 rule
13. A loan that is not backed by pledged assets
Prime rate
Comparison shopping
nsecured debt
Capacity
14. Treating people differently based on prejudice rather than individual merit
Co-signer
Interest rate
Discrimination
20/10 rule
15. Loans for which the interest rate does not change (up or down) over the life of the loan
Consumer advocate
nsecured debt
Fraud
Fixed-rate loans
16. The percentage charged for the use of money
20/10 rule
Interest rate
Collateral
Garnishment
17. Debts erased by the court during bankruptcy proceedings
Garnishment
Discharged debts
20/10 rule
Credit bureau
18. A shopping method that enables consumers to determine whether they are getting the best quality for the price
Prime rate
Closed-ended credit
Comparison shopping
Consumer advocate
19. The cost of credit expressed as a yearly percentage
20/10 rule
Annual percentage rate (APR)
Fixed-rate loans
Discharged debts
20. A responsible attitude toward living up to agreements
Needs
Discharged debts
Character
Fraud
21. Property possessed that is worth more than debts owed
Collateral
Credit history
Prime rate
Capital
22. The interest rate lenders offer to their best business customers
Credit bureau
Finance charge
Prime rate
Capacity
23. The remaining credit available to you; calculated as your credit limit minus the amount you have already spent
Values
Unused credit
Needs
Fixed-rate loans
24. A person who actively promotes consumer causes
Comparison shopping
Credit bureau
Consumer advocate
Credit history
25. The value of your next best alternative whenever you make a choice
Down payment
Consumer advocate
Opportunity cost
20/10 rule
26. A loan for a specific amount that must be repaid in full - including all finance charges - by a stated due date
Closed-ended credit
Finance charge
Time
Annual percentage rate (APR)
27. An itemized bill showing charges - credit - and payments posted to your account during the billing period
Interest rate
Statement
Closed-ended credit
Character
28. A person who promises in writing to repay a promissory note if the maker fails to pay
Co-signer
Opportunity cost
Credit history
Credit rating
29. An agreement to have a service performed now and pay for it later
Capital
Credit bureau
nsecured debt
Service credit
30. A legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay
Simple interest
20/10 rule
Bankruptcy
Finance companies
31. The intentional misrepresentation of information with the intent to deceive or mislead
Simple interest
Principal
Character
Fraud
32. A written statement of a consumer's credit history issued by a credit bureau to its business subscribers
Credit report
Unused credit
nsecured debt
Finance charge
33. An agreement to lend the borrower an amount up to a stated limit and to allow borrowing up to that limit again whenever the balance falls below the limit
Finance companies
Finance charge
Open-ended credit
Consumer advocate
34. Your total borrowing should not exceed 20 percent of your yearly take-home pay - and you should not take on monthly payments that total more than 10 percent of your monthly take-home pay
20/10 rule
Credit
Open-ended credit
Opportunity cost
35. Ingredients necessary for maintaining physical life
Statement
Collateral
Principal
Needs
36. The amount borrowed - or the unpaid portion of the amount borrowed - on which the borrower pays interest
Co-signer
Credit rating
Capacity
Principal
37. Small loan companies that usually charge high interest rates
Debtor
Statement
Garnishment
Finance companies
38. A measure of credit-worthiness based on an analysis of a consumer's financial history
Credit bureau
Credit rating
Service credit
Closed-ended credit
39. The ability to repay a loan with present income
Unused credit
Open-ended credit
Capacity
Down payment