WorksheetsWeek 16: Financial Literacy
Total questions: 26
Worksheet time: 13mins
Which statement best defines usury in lending practices shown in the image?
Charging interest at unreasonably high rates
Offering loans without any written contract
Sharing profits equally between lender and borrower
Charging small fees for loan processing only
According to the verses displayed, what restriction applied to lending among Israelites?
Charge interest to relatives but not strangers
Only charge interest on money, not food
Always charge interest to all borrowers
Do not charge interest to fellow Israelites
Use the biblical guidance shown to decide which action aligns with Deut 23:20.
Charging higher interest to people in need regardless
Charging interest to Israelites and foreigners equally
Charging no interest to anyone including foreigners
Charging interest to foreigners while not to Israelites
What best defines good debt for a borrower?
Money owed for items that appreciate
Money owed for everyday consumables
Money owed for things that always depreciate
Money owed for entertainment purchases
Which purchase is most likely to be considered good debt?
Latest gaming console release
Designer clothes for a party
A luxury vacation this summer
A home expected to gain value
Which statement about good debt is accurate?
It is always cheaper than bad debt
It never affects monthly payments
It guarantees increasing value forever
It can still carry significant risks
Why are homes and education often categorized as good debt?
They can increase future value or earnings
They never face market downturns
They are easy to buy without loans
They always cost less than gadgets
Which scenario shows excessive good debt risk?
Student loans too large to repay
Saving money in a bank account
Paying cash for groceries weekly
Buying used textbooks for class
What lesson can be learned from the 2007–08 housing crisis regarding good debt?
Housing always rises without fail
Values can fall despite expectations
Debt becomes harmless during booms
Mortgages never require planning
Which statement best defines bad debt?
Owing money on things losing value
Owing money on things gaining value
Saving money on things losing value
Saving money on things gaining value
Which purchase is most likely to create bad debt if bought with a loan?
A vacation trip to the beach
A stock that may appreciate
A government savings bond
A collectible that gains rarity
What key characteristic do items linked to bad debt share?
They depreciate after purchase
They increase steadily over time
They have guaranteed resale value
They are insured against loss
A teen finances a new TV with a high-interest store card. Why is this bad debt?
The warranty covers damage
The TV improves productivity
The card has reward points
The TV loses value quickly
Which option lists examples that commonly depreciate after purchase?
Cars, clothes, vacations, TVs
College degrees, job training
Gold, land, rare paintings
Savings bonds, certificates, CDs
You borrow to buy clothes for school. After one year, the clothes are worn and worth less. What is the best decision next time to avoid bad debt?
Save first, then pay in cash
Borrow at a higher interest
Replace clothes more often
Ignore the item’s resale value
Which feature commonly makes credit card debt a type of bad debt?
Low fixed interest over many years
High interest rates that compound quickly
Strict legal caps on interest charges
No interest charged on unpaid balances
Which statement best describes installment debt?
You borrow a fixed amount and repay over set time
You can spend up to a limit and repay flexibly
You only pay interest without repaying principal
You borrow monthly amounts that change each cycle
Which is a common example of installment debt?
Credit card with changing monthly balance
Payday advance with one lump repayment
Car loan with equal monthly payments
Overdraft that renews each month
What makes revolving debt different from installment debt?
Balance and payment can change each month
Principal is fixed for the entire term
Payment is identical every single month
There is no limit set by any issuer
Which statement about credit cards is accurate?
They require fixed payments only
They are a key example of revolving debt
They never have spending limits
They are always installment loans
A lender sets a credit limit and you can borrow up to that amount. What type of debt is this?
Predatory lending with no contract
Installment debt with fixed principal
Revolving debt with a preset limit
Balloon loan with one large payment
Which statement best defines predatory lending for consumers?
Loans from community banks with counseling
Loans offering low interest and flexible plans
Loans with fair terms and transparent fees
Loans that exploit borrowers with high costs
Which option is a common example of predatory lending?
Payday loans with very high fees
Fixed-rate mortgages from credit unions
Federal student loans from universities
Small business grants from cities
What is a likely impact of payday loans on borrowers?
Borrowers escape debt after one payment
Borrowers receive free financial education
Borrowers build long-term savings quickly
Borrowers need another loan to repay first
Car title loans share which feature with payday loans?
Charge extremely high rates and fees
Offer government-subsidized interest
Require no identification to borrow
Provide long repayment schedules
What additional housing costs besides the mortgage must most homeowners budget for?
Property taxes and home insurance
HOA fees and parking permits
Utility deposits and trash collection
Moving costs and furniture
