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