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






2. A loan that is not backed by pledged assets






3. The percentage charged for the use of money






4. Small loan companies that usually charge high interest rates






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






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






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






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






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






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






11. Ingredients necessary for maintaining physical life






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






13. The ability to repay a loan with present income






14. Interest computed on the amount borrowed only without compounding






15. A responsible attitude toward living up to agreements






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






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






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






19. The complete record of your borrowing and repayment performance






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






21. A person who owes money to others






22. Property possessed that is worth more than debts owed






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






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






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






26. A person who actively promotes consumer causes






27. The cost of credit expressed as a yearly percentage






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






30. Debts erased by the court during bankruptcy proceedings






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






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






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






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






35. 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






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






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






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






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