Benefits of Borrowing Money Quiz

What is one benefit of borrowing money from a friend or family member instead of from the bank?

• You don't have to repay your friends or family if you don't want to

• Friends and family cannot legally charge you interest on the loan, but banks can

• Friends and family will typically work with you to set up a repayment plan you can afford

What's a potential downside of asking his friend Kylie for a loan?

• Kylie will have to give him the money, even if she doesn’t want to

• As soon as she lends him the money, they won't be able to be friends any more

• It might cause problems in their friendship if Justin doesn't repay her on time or if he then asks for even more money

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What is the key difference between a credit card and a debit card?

• Credit cards allow you to borrow money to pay for things, while debit cards take money straight from your own checking account

• Wealthy people use credit cards, while people with lower incomes use debit cards

• You can only use credit cards if you are over 25, but you can use debit cards as long as you are over 18

Craig isn't sure if he should open up a credit card account or get a bank loan. What question is MOST useful in helping him decide which financial product he should get?

• Are you responsible with your money?

• Are you trying to make a bunch of small purchases over time or one large purchase?

• Are you using the money to purchase an item that is a need or a want?

Which age group tends to have the most credit card debt?

• Young adults

• Middle-aged people

• Senior citizens

What is the best way to avoid going into large debt on your credit card?

• Avoid paying the bill every month so your bank account stays high

• Pay half your balance every month

• Pay your full balance every month

Using this portion of a credit card statement, how much did the credit card owner pay toward their bill last month?

• $167.49

• $267.49

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According to this portion of a credit card statement, how much did the cardholder pay in total interest this billing cycle?

• $1.60

• $31.50

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What is the minimum amount this cardholder must pay on this month's statement?

• $167.49

• $400

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Each of the following factors impacts your credit score EXCEPT...

• Payment history

• Bank account balance