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WorksheetsInterest Rates and Inflation
Total questions: 11
Worksheet time: 11mins
Most countries try to maintain an inflation rate of ______ per year.
One percent or less
Two to three percent
Four to five percent
Six to seven percent
The _______ considers the weighted averages of a group of consumer goods and services.
Consumer price index
Aggregate supply
Producer price index
Aggregate demand
Which of the following causes of inflation is often described as “too much money chasing too few goods”?
Demand-pull inflation
Cost-push inflation
Demand-push inflation
Cost-pull inflation
Why might someone prefer a fixed rate loan over a variable/adjustable rate loan?
The interest rate fluctuates, but always stays below 5%
The interest rate stays fluctuates, but you can earn money in the long-run.
The interest rate stays the same for 6 months and continually decreases over the life of the loan.
The interest rate never changes so there are no surprises in payment changes.
Which type of interest rate is generally considered to be riskier?
fixed
variable
What is an unsecured loan?
A loan where you lose the paperwork
A personal loan taken out without providing security such as a house
A loan you don't have to re-pay
There is no such thing
What is "interest" when talking about savings or loans? Tick all correct answers
The money paid to you by the bank for the money you save with them
The amount of money you borrow from the bank
Whether the bank's adverts are entertaining or not
The amount of money you are charged by the bank for borrowing money
None of the above
