Unit 3 - Borrowing money

The cost of borrowing money is referred to as

• Interest

• Annual Percentage Rate

• Credit

• Credit Line

Which one is considered a danger of using a credit card

• no cash needed
• leads to overspending
• convenient
• earns rewards

People who pay off their credit card balance in full every month will pay less in interest on their credit card.

• true

• false

What does APR stand for?

• American Peoples Reports
• Annual Progress Report
• American Percentage Rate
• Annual Percentage Rate

An example of a financial institution is:

• A department store

• A bank

• A school

• An ATM machine

Online banking is an electronic way to view account activity and pay bills via the internet.

• True

• False

A bank is a not-for-profit financial institution.

• True

• False

I need a cheap loan. I will visit a credit ....branch nearby

Door step loans are a good option to borrow money because they´re so cheap...

• False

• True

Which of the following forms of borrowing do you think has the highest risk associated with it?

• Mortgage

• Credit card

• Loan shark

• Payday loan