WorksheetsFinancial Literacy - Credit Quest
Total questions: 10
Worksheet time: 8mins
1. Which of the following is NOT a borrowing from a bank?
Credit Card
Loans
Savings account
Book
What is responsible borrowing?
Borrowing money whenever you want to buy something, regardless of need
Borrowing money only when you really need it and ensuring you can pay it back.
Borrowing large amounts of money without considering the payment
Borrowing money to go for a party.
What happens if you fail to pay back the money you borrowed from a bank?
The bank gives you a gift
The bank charges you fees for late payment.
The bank forgives the debt.
The bank trusts you more and lets you borrow more money
The way you can stay out of credit card debt is
By limiting the number of credit cards you have
Don't buy anything you can't afford
By keeping track of your balance
All of the above
The main reason why people fall into serious credit card debt is
Irresponsible spending habits
Because they don't make enough money
Because they lose their job
All of the above
The air conditioning unit in your home breaks and you need to pay for a new one. Unfortunately, you do not have the money to pay for the full cost of the air conditioner right now but you need to replace the item immediately. Which form of payment should you use to cover the cost?
credit card
debit card
Which of the following are true statements about creating a budget? MARK ALL THAT APPLY
A budget allows you to track your expenses.
A budget allows you to make a plan to save for large purchases in the future.
Once you create a budget it should not be revised.
A budget should be based on your expected income.
What are some things they should consider when researching the best loan option to buy the car? SELECT ALL THAT APPLY?
the color of the car
the interest rate
The amount of money they can afford to spend to make the payment each month (what their budget is for the payments)
The length of the loan (how long it will take to pay back the money)
Credit is ________.
money you are given and promise to pay back later
money you borrow and promise to pay back later
money you borrow and do not have to pay back later
None of the above
Which of the following is NOT true about credit cards?
It can be easy to spend too much when you have a credit card.
Other people are more likely to lend you money when your credit history is good.
You do not need to worry about spending too much when you have a credit card.
Other people are less likely to lend you money when your credit history is not good.
