WorksheetsPersonal Finance Review Ch 16 TEST
Total questions: 31
Worksheet time: 26mins
Name
Class
Date
1.
Service credit is available to almost everyone.
a)
Yes
b)
NO
2.
Is Annual Percentage Rate (APR) expressed as a yearly rate?
a)
YES
b)
NO
3.
If you are late on your payments, it will have no affect on the interest rate you are charged.
a)
YES
b)
NO
4.
A revolving account is an _________end account.
a)
Closed
b)
Open
c)
Shut
5.
Pawnshops are retail stores.
a)
True
b)
False
6.
The most common source of cash loans is a private lender.
a)
YES
b)
NO
7.
Are you able to add on to a closed-end account, as long as payments are current?
a)
YES
b)
NO
8.
A line of credit is a pre- established amount that can be borrowed on demand, with collateral.
a)
YES
b)
NO
9.
Use of credit can lead to overspending.
a)
YES
b)
NO
10.
Do you have to be a member of a credit union to get a loan from them?
a)
YES
b)
NO
11.
Is a pawnbroker legal or illegal?
a)
Illegal
b)
Legal
12.
If there are no usury laws, companies can charge
a)
Only the % allowed in the state next to them
b)
They can set whatever % they want
c)
They won't charge any interest
d)
They can take your dog
13.
Interest and fees are know as
a)
collateral
b)
proration
c)
principal
d)
finance charges
14.
A common source of cash loan when you pledge property
a)
private lender
b)
pawn broker
c)
loan shark
d)
life insurance policy
15.
Property you posses that is worth more than your debts.
a)
collateral
b)
capital
c)
interest
d)
principal
16.
The amount borrowed
a)
collateral
b)
capital
c)
principal
d)
interest
17.
Credit that can be used again and again
a)
Closed Credit
b)
Installment
c)
Open Ended
d)
Contract Credit
18.
Person to whom one owes $$$$
a)
creditor
b)
balance due
c)
capital
d)
pawnbroker
19.
The least amount you pay on your credit agreement
a)
Finance Charge
Balance Due
Balance Due
b)
Minimum Payment
c)
Balance Due
d)
Finance Companies
20.
Department stores and variety stores offer this type of credit
a)
Service Credit
b)
Finance Charge
c)
Retail Store Credit
d)
Line of Credit
21.
Small loan companies with VERY HIGH interest rates
a)
Creditor
b)
Line of Credit
c)
Finance Charge
d)
Finance Companies
22.
The total amount that remains due on a loan
a)
Balance Due
b)
Finance Charge
c)
Finance Company
d)
Creditor
23.
A pre-established amount that can be borrowed
a)
Space of Credit
b)
Credit Limit
c)
Balance Due
d)
Line of Credit
24.
The interest and fees you pay for the use of credit
a)
Finance Company
b)
Capital
c)
Finance Charge
d)
Usury Law
25.
A loan on which property is pledged to ensure payment
a)
Consumer Loan
b)
Loan Company
c)
Service Loan
d)
Secured Loan
26.
In a regular charge account, when you pay the balance in full, a finance charge is computed
a)
YES
b)
NO
27.
Finance companies take less risk and charge lower interest rates than credit unions.
a)
YES
b)
NO
28.
Pawnbrokers are illegal businesses where loans are made on the value of the merchandise.
a)
YES
b)
NO
29.
The person you owe money to is the
a)
Credit
b)
Creditor
c)
Payee
d)
Teller
30.
Unlicensed lenders who charge illegal rates
a)
Creditor
b)
Pawnbroker
c)
Finance Company
d)
Loan Shark
31.
To get the best interest on a loan, go to a
a)
Friend
b)
Neighbor
c)
Bank
d)
Credit Union
100 %
