Understanding Debt

What is debt in simple words?

• The amount owed by the borrower to the lender

• The amount of money saved in a bank

• The amount of money given as a gift

• The amount of money spent on shopping

Who is the borrower?

• The person who owes money

• The person who lends money

• The person who saves money

• The person who spends money

What is the meaning of creditworthiness?

• Ability to repay borrowed money

• Ability to save money

• Ability to spend money

• Ability to give gifts

What is the document explaining?

• The concept of personal debt

• The concept of personal savings

• The concept of personal shopping

• The concept of personal gifts

What is the opposite of borrowing?

• Lending

• Spending

• Saving

• Shopping

What is a mortgage?

• A type of savings

• A form of debt

• A gift

• A type of income

What is a common reason people take out a mortgage?

• To buy a house

• To buy groceries

• To pay for a vacation

• To buy clothes

What is a secured debt?

• A debt backed by collateral

• A debt without any collateral

• A debt that is not paid back

• A debt with high interest

How can a company raise funds?

• By selling bonds

• By selling products

• By hiring more employees

• By reducing expenses

What is debt?

• Money owed by one person to another

• A gift given to someone

• A type of food

• A kind of animal