Financial Literacy

What is the term for borrowing money from a bank or financial institution?

• credit

• debt

• mortgage

• loan

Which type of borrowing allows you to spend more money than you have in your bank account?

• cash advance

• credit card

• debit card

• personal loan

What is the main advantage of using a credit card for purchases?

• Ability to build credit history

• Ability to track and manage expenses easily

• Ability to make purchases now and pay for them later

• Ability to earn rewards for purchases

What is the term for a loan that is not secured by collateral?

Which type of borrowing typically has a higher interest rate: personal loans or credit cards?

• personal loans

• mortgages

• student loans

• credit cards

What is the term for the amount of money you owe on a credit card or loan?

• debt

• credit

• interest

• balance

Which type of borrowing is linked to your bank account and allows you to withdraw more money than you have?

• personal loan

• credit card

• overdraft

• mortgage

What is the term for a bank account that you use for everyday transactions?

• savings account

• credit card

• investment account

• current account

Which type of borrowing is usually used for large purchases like a car or home renovation?

• credit card

• mortgage

• loan

• lease

What is the term for the fee charged by a bank when you spend more money than you have in your account?

• overlimit fee

• overdraw fee

• insufficient funds fee

• overdraft fee