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