Financial Savvy Showdown

Why is it important to compare loan options before borrowing?

• 1. To impress the bank staff.

• 1. To choose the option with the lowest total cost.

• 1. To avoid filling out too many forms.

• 1. To borrow more than you need.

If a bank offers a lower interest rate but higher processing fees, what should you do?

• 1. Choose the bank with the lower interest rate after calculating total costs.

• 1. Avoid that bank because of the processing fees.

• 1. Take the loan without thinking about costs.

• 1. Always choose the bank with the higher interest rate.

What is the main purpose of maintaining savings?

• 1. To spend on luxury items.

• 1. To have a backup for emergencies and future needs.

• 1. To lend money to others.

• To keep money idle.

Which of the following is the best way to handle financial emergencies?

• 1. Use all your savings without considering other options.

• 1. Evaluate all options like savings, selling assets, or borrowing.

• Avoid thinking about the emergency.

• 1. Take a high-interest loan immediately.

Why is it important to segregate incomes and expenses?

• 1. To track where your money is going and calculate savings.

• 1. To impress others with your organization skills.

• To increase your expenses intentionally.

• To avoid keeping records.

What is the disadvantage of selling an asset during an emergency?

• 1. You might not get its full value.

• You’ll have more savings.

• You can always buy it back immediately.

• 1. You’ll have too much cash.