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