Finance Quiz

Which of the following is an advantage of an overdraft?

• High interest rates.

• Helps in emergencies when you need money quickly.

• Requires a long-term commitment.

• Improves your credit score.

Which of the following is an advantage of a bank loan?

• You can borrow a small amount of money.

• You can avoid paying interest.

• You know exactly how much you need to pay each month.

• It requires no credit check.

What is a benefit of knowing exactly how much you need to pay each month for a bank loan?

• It allows for better financial planning.

• It increases the loan amount.

• It reduces the interest rate.

• It eliminates the need for a credit score.

What is a common feature of both overdrafts and bank loans?

• They both require no interest payments.

• They both involve borrowing money.

• They both improve your credit score.

• They both are types of savings accounts.

What is a disadvantage of a government grant?

• No paperwork is needed

• It is available to everyone

• There are strict rules on who can get a grant

• It must be paid back with interest

Which of the following is an advantage of a mortgage?

• It can be paid off quickly

• You can live in your own house while paying off the loan

• It requires no interest payments

• It is only available to wealthy individuals

Which of the following is an advantage of a loan from family or friends?

• It requires high interest payments

• It is more flexible with payments

• It is only available for buying a house

• It must be paid back immediately

What is a disadvantage of borrowing from family or friends?

• It requires high interest payments

• It may not require interest, making it cheaper than bank loans

• It can strain personal relationships if not managed well

• It is only available for buying a house

What is a common requirement for obtaining a government grant?

• No paperwork is needed

• It is available to everyone

• You may have to do a lot of paperwork to apply for one

• It must be paid back with interest

What is leasing?

• Buying something permanently

• Renting something for a set period

• Borrowing money from a bank

• Selling something you own