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