Borrowing Money
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Many people borrow money at some time. For example, very few people can pay cash for the home or car of their choice. Also, many people use credit cards or personal loans to purchase items such as furniture and electrical appliances. In order to have the use of the goods immediately, people borrow money to pay for them. They then make regular repayments over a period of time and pay an additional charge called:
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Fees
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Interest
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Account charges
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Fares
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Commerce Quiz on Home LearningPersonal Finance - Borrowing Money
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- 2.
Wise consumers should always select the most appropriate type of loan for what they want to buy. This will require them to compare the advantages and disadvantages of different types of loans. These types of loans include:
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Personal loans and credit cards
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Mortgages and personal loans
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Bank overdraft and credit cards
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All of the above
Correct Answer
A. All of the above -
- 3.
When talking about personal loans, what do we mean by unsecured loan?
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Nothing is deposited as a guarantee to fulfill the payment of the loan
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The loan is secure because the bank fees and interest rates are low
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Something is deposited as a guarantee to fulfill the payment of the loan
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The loan is not secure because the bank fees and interest rates are high
Correct Answer
A. Nothing is deposited as a guarantee to fulfill the payment of the loan -
- 4.
When talking about personal loans, what do we mean by secured loan?
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Nothing is deposited as a guarantee to fulfill the payment of the loan
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The loan is secure because the bank fees and interest rates are low
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Something is deposited as a guarantee to fulfill the payment of the loan
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The loan is not secure because the bank fees and interest rates are high
Correct Answer
A. Something is deposited as a guarantee to fulfill the payment of the loan -
- 5.
What is a guarantor?
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The bank guarantees you get a loan
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Someone who lends you the money because the banks wont
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Someone who guarantees to pay back the money if the borrower does not.
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A name for your employer
Correct Answer
A. Someone who guarantees to pay back the money if the borrower does not. -
- 6.
As part of your home learning, you were required to look at the reasons for and against borrowing money. Besides 'Forced saving', what is ONE reason FOR borrowing money that was listed.
Correct Answer
immediate satisfaction
convenience
possible savings
emergencies
improve your quality of life - 7.
Once you have decided to take out a home loan, there are four important steps you should take. The first step is:
Correct Answer
Decide how much you want to borrow
How much money you need to borrow
Think how much money you need - 8.
As part of your home learning, you were required to look at the reasons for and against borrowing money. Besides 'false sense of security', what is ONE reason AGAINST borrowing money that was listed.
Correct Answer
interest charges
impulse buying
additional costs
loss of control
inability to repay - 9.
Once you have decided to take out a home loan, there are four important steps you should take. The fourth and final step is:
Correct Answer
shop around for the best deal. Compare the advantages and disadvantages of different types of loans and lenders
compare all the different banks.
find the best deal banks are offering - 10.
Once you have decided to take out a home loan, there are four important steps you should take. The third step is:
Correct Answer
- 11.
Once you have decided to take out a home loan, there are four important steps you should take. The second step is:
Correct Answer
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Current Version
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Mar 20, 2022Quiz Edited by
ProProfs Editorial Team -
Jul 01, 2009Quiz Created by
Ewerakso
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