Understanding Buy Now Pay Later Services

Understanding Buy Now Pay Later Services

Assessment

Interactive Video

Created by

Emma Peterson

Business, Life Skills, Social Studies

9th - 12th Grade

Hard

The video discusses the rise of buy now pay later services, highlighting their popularity among young people due to convenience and lack of regulation. It warns of potential financial risks, such as debt accumulation, and the absence of stringent checks compared to traditional credit. The video explores possible regulatory measures to protect consumers and offers advice for responsible use.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main advantage of Buy Now Pay Later (BNPL) services?

They allow for smaller, interest-free payments.

They require thorough credit checks.

They are only available for essential purchases.

They offer high-interest loans.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When did credit cards become a thing in Australia?

1984

1974

2004

1994

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why are BNPL services particularly appealing to young people?

They require a lot of paperwork.

They have high-interest rates.

They are easy to access without visiting a bank.

They offer high rewards points.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a major risk associated with BNPL services?

They are only available for luxury items.

They can lead to significant debt.

They always require a down payment.

They have strict age verification.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of BNPL users miss payments?

One in three

One in five

One in ten

One in two

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What can happen if someone accumulates too much debt through BNPL services?

They get a higher credit score.

They receive more credit offers.

Debt collectors may come knocking.

They get a discount on future purchases.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How might underage users bypass age restrictions on BNPL services?

Using a fake ID.

Using their parents' driver's license.

Using their own ID.

Using a school ID.

8.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the government's proposed options for regulating BNPL services?

Banning BNPL services entirely.

Applying the full credit act regulations.

Allowing only adults over 25 to use BNPL.

Making BNPL services free of charge.

9.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What should users consider when planning BNPL repayments?

Ignoring any potential issues.

Only the best-case scenario.

Both best and worst-case scenarios.

The worst-case scenario only.

10.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a recommended practice for current BNPL users to avoid debt?

Only using one BNPL service at a time.

Ignoring repayment schedules.

Borrowing more than they can repay.

Using multiple BNPL services simultaneously.

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