PF Unit 4 Lesson 4

What is a pawnshop?

• A place where you can buy groceries

• A financial institution that offers loans based on the value of personal possessions

• A bank that provides savings accounts

• A store that sells electronics

Tags

DOK Level 1: Recall

Which of the following is a characteristic of check cashing businesses?

• They require a bank account to cash checks

• They typically require an ID to cash checks

• They cash any valid check at any time without requiring an account

• They offer long-term loans

Tags

DOK Level 1: Recall

Why might individuals seek out alternative financial businesses instead of regular financial institutions?

• They prefer the convenience of alternative businesses

• They have bad credit or low income, limiting their access to regular financial institutions

• They want to avoid paying taxes

• They are looking for investment opportunities

Tags

DOK Level 2: Skill/Concept

Explain the risk involved with using pawnshops for loans.

• The interest rates are lower than banks

• The borrower might lose their valuable item if they fail to repay the loan

• The loans are always interest-free

• The borrower can always reclaim their item without repayment

Tags

DOK Level 2: Skill/Concept

Analyze why some alternative financial businesses might be considered unreliable.

• They offer better interest rates than banks

• They are known for being fraudulent and exploitative

• They provide financial advice

• They are regulated by the government

Tags

DOK Level 3: Strategic Thinking

What is the primary purpose of a pawnshop?

• To sell second-hand goods

• To provide fast, informal loans based on personal possessions

• To offer investment advice

• To exchange foreign currency

Tags

DOK Level 1: Recall

Discuss the potential consequences of using check cashing businesses frequently.

• It helps build a strong credit history

• It can lead to financial instability due to high fees

• It guarantees financial security

• It provides long-term savings benefits

Tags

DOK Level 3: Strategic Thinking

Identify a reason why someone might choose a check cashing business over a bank.

• They offer higher interest rates on savings

• They do not require an account to cash checks

• They provide free financial counseling

• They have lower transaction fees

Tags

DOK Level 2: Skill/Concept

Evaluate the statement: "Pawnshops are a reliable source of long-term financial support."

• True, because they offer low-interest loans

• False, because they are meant for short-term, quick loans

• True, because they provide financial planning services

• False, because they are regulated like banks

Tags

DOK Level 3: Strategic Thinking

What happens if a borrower does not repay a pawnshop loan?

• The loan is forgiven

• The pawnshop returns the item without any penalty

• The pawnshop sells the item and keeps the profits

• The borrower is given an extension without any fees

Tags

DOK Level 1: Recall