WorksheetsCredit Terms: Part I
Total questions: 15
Worksheet time: 8mins
What does the term credit mean?
Saving money for later
Getting something now and paying for it later
Borrowing money only from friends
Paying cash for everything
Which example best shows someone using credit?
Paying cash for lunch
Putting money into savings
Buying shoes now and paying later
Earning money from a job
What is a loan?
Free money from the bank
Money given all at once and paid back over time
A type of credit card
Extra money in a checking account
When you take out a loan, what do you usually have to pay in addition to the amount borrowed?
A reward
A discount
Interest
A refund
What does interest mean in simple terms?
Money you earn for saving
Extra money you pay for borrowing
A fee for opening an account
Money the bank gives back
What is a credit card mainly used for?
Saving money
Borrowing money to buy things
Paying bills automatically
Taking out cash loans only
What happens if you do NOT pay off your credit card balance right away?
Nothing happens
The debt disappears
You are charged interest
The card stops working forever
Which type of credit is specifically used to buy a house or property?
Credit card
Loan
Mortgage
Overdraft
What is used as collateral in a mortgage?
Your car
Your paycheck
The house itself
Your credit card
What does collateral mean?
Extra money paid monthly
Something the bank can take if you don’t pay
A type of interest
A bank reward
What is an overdraft?
A loan for emergencies
Spending less than you have
Spending more money than is in your account
A type of mortgage
What usually happens when a bank covers an overdraft?
The bank gives you free money
The bank closes your account
The bank charges a fee
The bank lowers interest rates
Which situation is an example of an overdraft?
Paying rent with a loan
Using a credit card online
Buying groceries with no money left in your account
Saving money each month
Which option is a key difference between a loan and a credit card?
Loans are free
Credit cards give money all at once
Loans are paid back over time after getting money once
Credit cards never charge interest
Which type of credit usually involves fees instead of interest?
Mortgage
Loan
Credit card
Overdraft
