What is a Loan?

Aaron is disappointed when he finds his crisps missing at school. His friend Amira offers to share hers but introduces the concept of a loan, explaining that he must return the crisps with extra. Amira further explains loans, interest, and why people take loans for big purchases. She describes the process of applying for a loan, including credit checks. Aaron humorously applies this concept to his sister, offering her a 'crisp loan.'

What did Amira mean when she said the crisps were a loan?

• Aaron could eat the crisps without any conditions.

• Aaron could keep the crisps forever.

• Aaron had to return the crisps with extra.

• Aaron had to pay money for the crisps.

Why do people usually take loans according to Amira?

• To purchase big things like a house or car.

• To buy small items like groceries.

• To pay for everyday expenses.

• To save money in the bank.

What is the purpose of interest on a loan?

• To make the loan cheaper.

• To help the bank earn money.

• To make the loan process faster.

• To allow the borrower to pay less.

What must you do before getting a loan from a bank?

• Have no other expenses.

• Have a friend vouch for you.

• Be a child.

• Be an adult and pass a credit check.

How did Aaron apply the concept of a loan with his sister?

• He gave her crisps without any conditions.

• He asked her to return the crisps with extra.

• He refused to give her any crisps.

• He asked her to pay money for the crisps.