WorksheetsKnowledge Check: Business Math
Total questions: 20
Worksheet time: 11mins
Which of the following is an example of a secured loan?
Credit card
Mortgage
Student loan
Personal line of credit
What does a credit score primarily measure?
Your annual income
Your creditworthiness
Your total savings
Your monthly expenses
Which type of account is specifically designed to help you save money and earn interest?
Checking account
Savings account
Money market account
Certificate of deposit
Which of the following is a basic component of a personal budget?
Stock investments
Monthly income
Credit score
Loan interest rate
What does the term "interest rate" refer to?
The amount borrowed from a lender
The percentage charged for borrowing money
The total amount of a loan
The length of a loan term
Which of the following best describes an unsecured loan?
A loan backed by collateral
A loan not backed by collateral
A loan with a fixed interest rate
A loan for purchasing a house
Which factor is most likely to increase your credit score?
Making late payments
Maxing out your credit cards
Paying bills on time
Applying for multiple loans at once
Which of the following is a benefit of having a savings account?
Unlimited withdrawals without penalty
Earning interest on deposited funds
Higher loan eligibility
Lower monthly expenses
Which of the following is a characteristic of a simple interest loan?
Interest is calculated only on the original principal
Interest is added to the principal each period
The interest rate changes every month
The loan is always secured
If your credit score drops from 750 to 600, what is a likely consequence?
You will receive higher interest rates on loans
Your income will increase
You will automatically qualify for more credit cards
Your savings account interest will increase
Which of the following actions can help you build a positive credit history?
Missing payments regularly
Paying your bills on time
Frequently applying for new credit cards
Ignoring your credit report
A loan offers a 4% annual interest rate compounded monthly. What is the main difference between this and a 4% simple interest rate?
Compound interest earns less over time
Simple interest is calculated on the original principal only
Compound interest is illegal
Simple interest is always higher
You are offered two loans: Loan A has a lower interest rate but a longer term, while Loan B has a higher interest rate but a shorter term. How would you determine which loan costs less overall?
Choose the loan with the lower monthly payment
Compare the total interest paid over the life of each loan
Pick the loan with the shortest term
Select the loan with the highest principal
A friend wants to improve their credit score. Which plan would be most effective?
Only paying the minimum on all debts
Paying off high-interest credit cards first and making all payments on time
Opening several new credit accounts at once
Ignoring old debts
You want to buy a laptop in one year, but your current savings are not enough. Which budgeting strategy would best help you reach your goal?
Increase your discretionary spending
Set a monthly savings target and track your progress
Ignore your budget and hope for the best
Take out a payday loan
You notice that your monthly expenses are consistently higher than your income. Which strategic budgeting adjustment would best address this issue?
Increase discretionary spending
Reduce non-essential expenses and increase savings
Ignore the difference and continue spending
Take out more loans
Which of the following best explains why maintaining a good credit score is important when applying for a loan?
It guarantees loan approval regardless of income
It can help you qualify for lower interest rates and better loan terms
It increases the amount of taxes you pay
It allows you to avoid making monthly payments
What can you do to avoid debt?
Spend more money than you earn
Use all your savings to buy expensive things
Only use money that you have, instead of borrowing
Borrow money from many different people
