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