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Develop an understanding of debt and consumer credit

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

A credit card is non-revolving credit which allows the consumer to make purchases on credit.

a)

True

b)

false

2.

Which of the following is non-revolving credit?

a)

Car loans

b)

Overdraft facilities on current account

c)

Credit cards

d)

None of the above

3.

Credit is very important because it allows you to borrow money for expenses.

a)

true

b)

false

4.

Why is credit dangerous

a)

Can buy cars and houses

b)

Debt and low rates

c)

High rates and Debt

d)

High Rates and no debt

5.

The maximum amount you may borrow on a credit card is known as:

a)

creditworthiness

b)

credit report

c)

credit limit

d)

variable rate of credit

6.

What is one advantage of having a credit card?

a)

It prevents you from spending more than you earn.

b)

It encourages you to budget your money wisely.

c)

It helps you pay off debts that you may have.

d)

It allows you to make purchases without carrying lots of cash.

7.

I lend you money , Who am I?

a)

I am a lender.

b)

I am a borrower.

8.

............ a debt that is baked by any collateral

a)

Secured

b)

Unsecured

c)

Loan

9.

............ a debt that is not guaranteed or baked by any collateral

a)

Secured

b)

Unsecured

c)

Mortgage

10.

............. is an example of secured loan

a)

Personal loan

b)

Visa card

c)

Master cared

d)

Mortgage

11.

................ is an example of unsecured loan debt

a)

Mortgage

b)

Personal loan

c)

Car loan

d)

All the above