What Do You Know About Money?

1. Does Money grow on trees?

True

False

We all wish!

Explanation

We all wish!

2. Setting and sticking to a budget is good?

True

False

Keeping a track on your spending is always a good idea.

Explanation

Keeping a track on your spending is always a good idea.

3. One of the most dangerous things you can do with money is consistently spend more than your earn, and borrow to fill the gap?

True

False

by setting a budget you can keep your spending under control.

Explanation

by setting a budget you can keep your spending under control.

4. Store cards will always give you the best rate of interest?

True

False

Store cards tend to have a higher interest rate.

Explanation

Store cards tend to have a higher interest rate.

5. What is Debt?
Debt is where you borrow money from someone, so you now owe them money and have to pay it back?

True

False

Debt refers to the act of borrowing money from someone, resulting in an obligation to repay the borrowed amount. Therefore, the statement "Debt is where you borrow money from someone, so you now owe them money and have to pay it back" accurately describes the concept of debt. Hence, the correct answer is True.

Explanation

Debt refers to the act of borrowing money from someone, resulting in an obligation to repay the borrowed amount. Therefore, the statement "Debt is where you borrow money from someone, so you now owe them money and have to pay it back" accurately describes the concept of debt. Hence, the correct answer is True.

6. All debt is bad?

True

False

We will all need to borrow money at some point in our life, a mortgage isn't a bad debt.

Explanation

We will all need to borrow money at some point in our life, a mortgage isn't a bad debt.

7. When you take out a loan the lower the interest rate the less you pay in total?

True

False

When you take out a loan, the interest rate determines the additional amount you have to pay on top of the principal amount borrowed. A lower interest rate means that the additional amount you have to pay is reduced. As a result, the total amount you have to repay over the course of the loan is lower when the interest rate is lower. Therefore, the statement "the lower the interest rate the less you pay in total" is true.

Explanation

When you take out a loan, the interest rate determines the additional amount you have to pay on top of the principal amount borrowed. A lower interest rate means that the additional amount you have to pay is reduced. As a result, the total amount you have to repay over the course of the loan is lower when the interest rate is lower. Therefore, the statement "the lower the interest rate the less you pay in total" is true.

8. Companies are there to help you?

True

False

They are there to make money out of you!

Explanation

They are there to make money out of you!

9. What is the maximum rate of interest on a Norfolk Credit Union loan?

16.8% APR per month

26.8% APR per month

36.8% APR per month

YES! that's right! just 26.8% APR per month.

Explanation

YES! that's right! just 26.8% APR per month.

10. You owe £3000 on a credit card with an interest rate of 17.9%, you repay the minimum of 2% on the card, how long will it take you to pay off the debt?

10 years

20 years

40 years

you pay back £6300 in interest

Explanation

you pay back £6300 in interest