Revision Quiz

What is an overdraft and how can it impact your financial health?

• An overdraft is a type of savings account that earns interest.

• An overdraft allows you to withdraw more than your account balance, potentially leading to fees and interest charges.

• An overdraft is a loan that requires collateral.

• An overdraft is a type of insurance policy.

Which of the following best describes a secured personal loan?

• A loan that does not require any collateral and has a fixed interest rate.

• A loan that requires collateral, such as a house or car, and typically offers lower interest rates.

• A loan that is only available for educational purposes.

• A loan that is only available to individuals with a savings account.

Kiara is considering opening a savings account. What is a significant advantage of having a savings account?

• It provides access to unlimited overdraft facilities.

• It offers a secure place to store money while earning interest over time.

• It allows for frequent withdrawals without any penalties.

• It includes free travel insurance.

Which feature is commonly associated with a basic current account in the UK?

• High interest rates on deposits.

• Access to overdraft facilities and the ability to set up direct debits.

• Long-term investment options.

• Free travel insurance for international trips.

What is "debt consolidation"?

• A way to avoid paying any debts.
• Debt consolidation is the process of combining multiple debts into a single loan.
• A strategy to invest in stocks.
• A method to increase credit card limits.

When Arjun was planning his trip abroad, he considered getting travel insurance. What does travel insurance typically cover?

• Routine medical check-ups and vaccinations.

• Medical emergencies, trip cancellations, and lost luggage.

• Overdraft fees incurred during the trip.

• Personal loan repayments.

Which strategy is most effective for managing debt?

• Ignoring interest rates and focusing on minimum payments.

• Consolidating multiple debts into a single payment with a lower interest rate.

• Taking out additional loans to cover existing debts.

• Using credit cards for all purchases to earn rewards.

What is one financial advantage of having a savings account for a student?

• Access to credit cards.

• Ability to earn interest on deposited funds.

• Free movie tickets.

• Discounts on textbooks.

What is a typical feature of a student current account in the UK?

• High interest rates on deposits.

• No overdraft facilities.

• Interest-free overdraft up to a certain limit.

• Mandatory travel insurance.

Which of the following is NOT typically covered by travel insurance?

• Lost luggage.

• Medical emergencies.

• Airport transfers.

• Trip cancellations.