WorksheetsInterest rate
Total questions: 10
Worksheet time: 5mins
What is an interest rate?
A fee for banking services
The percentage charged on borrowed money
A tax on income
Who pays the interest when you borrow money from a bank?
The bank
The borrower
The government
Who earns interest when money is saved in a bank?
The saver
The bank only
Nobody
Interest rates are usually expressed as:
A percentage
A fixed amount in dollars
A number of months
What does a higher interest rate mean for a saver?
They earn less
No effect
They earn more
What does a higher interest rate mean for a borrower?
Borrowing is cheaper
Borrowing costs more
No effect
Which statement is true?
Interest only applies to loans
Interest is a reward for saving
Interest is the same for all banks
Interest is calculated on:
The principal amount and sometimes accumulated interest
Only the principal amount
Only on fees
Which is an example of interest earned?
Paying back a loan
Depositing cash in your wallet
Money in a savings account grows
Why is understanding interest rates important?
Helps ignore bank fees
Helps borrow wisely
Only matters for taxes
