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Yr 9 Borrowing

Total questions: 10

Worksheet time: 13mins

Name
Class
Date
1.

Which of the following is NOT one of the main financial institutions that lend money?

a)

Building societies

b)

Credit Unions

c)

Art societies

d)

Your relative

e)

Banks

2.

Unsecured loans use ___ as a security for repayments risk

a)

A high interest rate

b)

An asset

3.

Mortgage loan is a loan you take to ...

a)

...purchase a boat

b)

...use for personal spending

c)

...purchase a house

d)

...pay for tuition fees

4.

Writing a cheque greater than the amount in your bank account is a ...

a)

Bank overdraft

b)

Regular cheque

c)

Credit notes

5.

What should you do when reaching a credit limit on your credit card?

a)

Apply for a new one

b)

Ask for a 17th credit card, just like the girl from Dr Phil...why not?!

c)

Wait for a notice letter from the bank

d)

Pay off the amount before the due date

6.

Why do major retailers charge their customers a higher interest rate on store credit cards?

a)

To be better than a bank

b)

To be different among their competitors

c)

Greater risk of customer default

d)

They are scared of the girl from Dr Phill to come back shopping

7.

Payday loan is ...

*(you know this one)

a)

Taking a loan from your employer before you get paid

b)

A loan taken from a bank with a condition to pay it off with your next wage money

c)

Money borrowed on the day you are paid from work

8.

A payment made for use of money that has been borrowed is ....

a)

An interest

b)

A deposit

c)

A bond

9.

You want to buy a new laptop that costs $2500 or $500 deposit plus $202/month for 12 months. Calculate cost of credit.

a)

322

b)

563

c)

424

d)

467

10.

If the full price of a kettle is $119 and a cost of credit is $11 over 3 months of loan repayments, then an interest rate charged is ...

a)

9%

b)

15%

c)

11%

d)

23%