Brain Pop "Debt" Quiz - SS8E3d

You borrow $50 at 10 percent yearly interest. How much do you have to pay back to the lender after one year?

• $50

• $55

• $60

• $75

Moby is $200 in debt to Rita. In other words:

• Rita borrowed $200 from Moby.

• Rita owes Moby $200.

• Moby owes Rita $200.

• Moby just paid Rita $200.

Which of the following would most likely be found in your credit history?

• Information about whether you have been fired from your job

• The amount of money in your savings account

• The number of credit cards you currently owe money on

• Your annual income

Cassie borrowed $100 from Tim, and then defaulted on the debt. In other words:

• She told Tim she's not going to pay him back.

• She refused to pay any interest on the loan.

• She paid Tim back in small monthly increments.

• She doubled the amount of money she borrowed.

You take out a student loan to pay for law school. What's the most likely point at which the loan will be fully paid off?

• Immediately after graduation

• One year after graduation

• After you have practiced law for several years

• After you retire at age 65

What slogan might a credit card company use to get you to use its services?

• "Buy now, pay later".

• "Stop paying for your purchases".

• "We offer the highest interest rate in the nation".

• "Avoid bankruptcy by using our card".

Which of the following is the best reason to take out a loan for a new car?

• The car you are looking to buy is much nicer than your current year.

• You work five miles away and there's no public transportation.

• The car dealer is offering a low interest rate.

• A car would make shopping and other errands more convenient.

What motivates credit card companies to offer young people their first cards?

• They want to help people establish a good credit history.

• They want people to default on their debts.

• They want to make money on interest payments.

• They think that young borrowers are the safest risks.

If you buy a U.S. bond:

• The government is borrowing money from you.

• You're borrowing money from the government.

• The national debt falls.

• The public debt falls.

The national debt will ultimately have to be repaid by:

• Government officials

• Bond buyers

• Banks and other lenders

• Taxpayers