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Worksheets

savings and borrowing

Total questions: 27

Worksheet time: 17mins

Name
Class
Date
1.
Risky investments
a)
Are meant to make small returns on investment
b)
May lead to a larger return on investment
c)
Are always long-term
d)
Involve checking accounts
2.
Don't put all your eggs in one basket best refers to which of the following pieces of advice
a)
Diversify your stock portfolio in order to reduce risk
b)
Invest in a single stock for the largest gain
c)
Take out as many loans as you can
d)
Don't hesitate when buying stocks
3.
When you take out a mortgage, what are you putting up as collateral
a)
Your principal
b)
Your interest
c)
Your house
d)
Your down payment
4.
A low-interest loan that doesn't need to be paid back right away is most likely a
a)
Mortgage
b)
Student loan
c)
Car loan
d)
Payday loan
5.
Falling behind on loan payments is called
a)
Defaulting
b)
Foreclosing
c)
Borrowing
d)
Collateral
6.
Your credit score will be significantly lowered if you
a)
You miss a loan payment
b)
Buy a house
c)
Take out a loan
d)
Go to college
7.
A house cost 500,000. You put 100,000 down and borrow 400,000 at a 30 year 4% fixed interest rate. Which is your principal?
a)
600,000
b)
500,000
c)
400,000
d)
100,000
8.
Your house cost 100,000. You put 20% down. What is your down payment? 
a)
10,000
b)
20,000
c)
100,000
d)
120,000
9.

The type of account you use to save money

a)

Deposit

b)

Credit

c)

Debit

d)

Current

10.

The reward for saving and the cost of borrowing

a)

investment

b)

interest

c)

capital

d)

profit

11.

A bank overdraft is an example of a _________________ loan

a)

long-term

b)

short-term

c)

medium-term

d)

eternal

12.

The reward for buying shares in a company

a)

interest

b)

Divided

c)

Dividend

d)

shares

13.

Best source of finance for buying a car is

a)

bank overdraft

b)

mortgage

c)

credit card

d)

medium term loan

14.

The true rate of interest earned on savings is called

a)

APR

b)

AER

c)

ABC

15.

True or false - with hire purchase you do not own the item you buy until the final instalment is paid

a)

True

b)

False

16.

A mortgage is an example of at

a)

Short term source of finance

b)

Medium term source of finance

c)

Long term source of finance

17.

When you lease(rent) something you will

a)

eventually own the item

b)

never own the item

18.

An organisation that will help you if. you are having trouble repaying your debts is

a)

AIB

b)

PTSB

c)

MABS

d)

APR

19.

What is "interest" when talking about savings or loans? Tick all correct answers

a)

The money paid to you by the bank for the money you save with them

b)

The amount of money you borrow from the bank

c)

Whether the bank's adverts are entertaining or not

d)

The amount of money you are charged by the bank for borrowing money

e)

None of the above

20.

If an interest rate is quoted as 6.5%, what is this as a decimal?

a)

65.0

b)

6.5

c)

0.65

d)

0.065

e)

0.0065

21.

If you take out a loan, what level of interest rate should you look for?

a)

As high as possible

b)

Somewhere in the middle

c)

The lowest you can find

d)

It doesn't matter; it makes no difference

22.

To earn as much interest as possible on your money, you should open a __________ account that ________ interest and has the ______________ interest rate.

a)

loan; pays; middle

b)

loan; charges; lowest

c)

savings; charges; prettiest

d)

savings; pays; highest

23.

What is an unsecured loan?

a)

A loan where you lose the paperwork

b)

A personal loan taken out without providing security

c)

A loan you don't have to re-pay

d)

There is no such thing

24.

What is a secured loan?

a)

The same as an unsecured loan

b)

Money you lock in a safe

c)

A loan with worse interest rates than an unsecured loan

d)

A loan taken out against an asset you own, for example a house

25.

What is APR?

a)

Nothing to do with savings or loans

b)

Annual Percentage Rate of interest, a way of comparing different financial products

c)

Alluvial Parsnip Ratio

d)

The amount you wish to borrow from a bank

26.

What is APR? Tick all that apply

a)

A way of comparing different loans or savings accounts

b)

Average Personal Religions

c)

None of the answers here

d)

Annual Percentage Rate

27.

You need a loan for £500 for 2 years. you shop around for the best interest rates, and find suitable loans at 4.5%, 6.7% and 12.9% APR. Which loan rate should you choose?

a)

The loan at 12.9% because it is the best value

b)

The loan at 4.5% because it is the cheapest

c)

The loan at 6.7% because it is in the middle

d)

It doesn't matter because I will pay the same amount overall