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