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Banking: Lending money to business

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

How do banks lend their money to businesses?

a)

Bank overdraft and Bank loan

b)

Credit and Debit Card

c)

Winning Cash Prizes

d)

Through donations

2.

What does an overdraft mean?

a)

A thing that is borrowed, especially a sum of money

that is expected to be paid back with interest.

b)

A place that helps to deal with money

c)

A sum of money paid into a bank account.

d)

taking out more money than is in your account.

3.

What does a bank loan mean?

a)

A thing that is borrowed from a bank, especially a sum of money

that is expected to be paid back with interest.

b)

A place that helps to deal with money

c)

A sum of money paid into a bank account.

d)

taking out more money than is in your account.

4.

Bank overdraft has a shorter period and bank loan has a long period

a)

True

b)

False

5.

Bank overdraft has a higher interest rate than a bank loan

a)

True

b)

False

6.

Which bank charged their interest based on daily outstanding balance?

a)

Bank Overdraft

b)

Bank Loan

7.

Which bank charged interest for annum/yearly for the entire loan?

a)

Bank Overdraft

b)

Bank Loan

8.

The borrower must be the holder of a current account

a)

Bank Overdraft

b)

Bank Loan

9.

The borrower does not need to be a customer of the bank, as long security is provided

a)

Bank Overdraft

b)

Bank Loan

10.

The borrower may need to provide various forms of security

a)

Bank Overdraft

b)

Bank Loan