Loan Types Quiz

What is an unsecured loan based on?

• Collateral

• Credit score

• Savings account

• Property value

What do secured loans require?

• No interest

• Collateral

• High credit score

• Monthly fees

Which type of loan usually has fixed interest rates?

• Secured loans

• Unsecured loans

• Savings loans

• Business loans

What is an example of a secured loan?

• Loan for a vacation

• Loan against your car

• Loan for groceries

• Loan for a gift

What is one benefit of using a credit card?

• You can borrow money up to a certain limit.

• You never have to pay back the money.

• You get free gifts every month.

• You can only use it once.

What happens if you don't pay the full balance on a credit card each month?

• You pay interest on the outstanding balance.

• You get a reward.

• The card stops working.

• You get more credit.

What is an example of using a credit card wisely?

• Buying everything you want and not paying.

• Using it for everyday expenses and paying off the balance monthly.

• Only using it for emergencies and never paying.

• Giving it to friends to use.

What is a bank overdraft?

• A type of loan from the bank

• When you have extra money in your account

• When you withdraw more money than you have

• A savings account feature

What might banks charge for an overdraft?

• No fees at all

• Additional fees or penalties

• A discount on your next purchase

• Free money

What is an example of using an overdraft?

• Buying a new car

• Covering short-term cash shortages until your next paycheck

• Saving for a vacation

• Investing in stocks