Borrowing

What does APR stand for?

• Annual penny rate

• Annual percentage rate

• Any percentage rate

• Annual percentage race

Short term finance means

• 1-5 years

• 5 years and more

• Less than 1 year

• Less than a month

Which of the following requires a mortgage?

• paying a phone bill

• buying a car

• Hiring a bouncy castle

• Buying a house

Identify three responsibilities of a borrower.

• To pay back the loan in full and on time

• To use the loan for its intended purpose

• To delay repayment of the loan for as long as possible

• to be truthful when applying for a loan

Identify three rights of the borrower

• To cancel the agreement within 14 days

• To only pay back what he can afford

• To know the APR

• To know the total cost of the loan

Which one of the following is a short-term source of finance?

• Credit card

• Hire purchase

• mortgage

• term loan

which one of the following is a medium term source of finance.

• Credit card

• Term Loan

• bank overdraft

• Mortgage

A moneylender is a good option when you want to get a loan

• True

• False

Which three of the following are risks of borrowing?

• You could lose your home

• You could get into debt

• You could be taken to court

• You could earn more money

Long term finance is for

• 1-5 years

• less than 1 year

• more than 5 years

• more then 10 years