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