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