Test your basic knowledge |

Credit Management

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. 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






2. The ability to repay a loan with present income






3. A shopping method that enables consumers to determine whether they are getting the best quality for the price






4. A loan that is not backed by pledged assets






5. A responsible attitude toward living up to agreements






6. Small loan companies that usually charge high interest rates






7. A legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay






8. The value of your next best alternative whenever you make a choice






9. The remaining credit available to you; calculated as your credit limit minus the amount you have already spent






10. Loans for which the interest rate does not change (up or down) over the life of the loan






11. Debts erased by the court during bankruptcy proceedings






12. The percentage charged for the use of money






13. An agreement to have a service performed now and pay for it later






14. The length of time the borrower will take to repay a loan; expressed as a fraction of a year






15. The total dollar amount of all interest and fees you pay for the use of credit






16. A person who promises in writing to repay a promissory note if the maker fails to pay






17. The interest rate lenders offer to their best business customers






18. A person who actively promotes consumer causes






19. Ingredients necessary for maintaining physical life






20. A measure of credit-worthiness based on an analysis of a consumer's financial history






21. A company that gathers - stores - and sells credit information to business subscribers






22. A pre-established amount that can be borrowed on demand with no collateral






23. Treating people differently based on prejudice rather than individual merit






24. A part of the purchase price paid in cash up front - reducing the amount of a loan






25. The intentional misrepresentation of information with the intent to deceive or mislead






26. The complete record of your borrowing and repayment performance






27. The ideals in life that are important to you and affect your decision making






28. 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






29. Interest computed on the amount borrowed only without compounding






30. A person who owes money to others






31. Money borrowed to buy something now with an agreement to pay for it later






32. A loan for a specific amount that must be repaid in full - including all finance charges - by a stated due date






33. Property possessed that is worth more than debts owed






34. A legal process that allows part of your paycheck to be withheld for payment of a debt






35. The cost of credit expressed as a yearly percentage






36. Property pledged to a creditor to assure repayment of a loan






37. A written statement of a consumer's credit history issued by a credit bureau to its business subscribers






38. An itemized bill showing charges - credit - and payments posted to your account during the billing period






39. The amount borrowed - or the unpaid portion of the amount borrowed - on which the borrower pays interest