Front

What does 'collateral' refer to in the context of a loan application?

Back

Something valuable you promise if you can't pay

Front

When Ava applied for a loan, the bank assessed her based on the 5 C's of credit. Which 'C' refers to Ava's reputation?

Back

Character

Front

Avery is trying to manage her finances better and comes across the 20/10 Rule. What is this rule used for in financial literacy?

Back

Calculating borrowing capacity

Front

Why might Ava use credit?

Back

To purchase items she cannot afford immediately

Front

Lily is considering using a credit card for her purchases. What is an incorrect statement about credit? It is a form of borrowing, It requires repayment, It is a gift, It allows for immediate purchase

Back

It is a gift

Front

What is the arrangement called when money is given from one party to another, agreeing that the money will be paid back with interest?

Back

Loan

Front

Nora is considering getting a credit card. What is one way credit can benefit her as a grown-up?

Back

Earn rewards

Front

Zoe is considering using a credit card for her purchases. What is a benefit of using credit that relates to her future financial actions?

Back

Build a good reputation for future borrowing

Front

Isla's car broke down unexpectedly, and she needs to get it repaired immediately. What is a benefit of using credit in this urgent situation?

Back

Pay for emergencies

Front

What is the security called that Priya must provide to ensure her loan is repaid?

Back

Property or assets used as security for a loan