Introduction to borrowing and investments

The video explores financial literacy, focusing on borrowing and investments. It covers borrowing options like loans, credit cards, and mortgages, emphasizing the importance of understanding interest rates. The video then transitions to investments, comparing them to nurturing a garden, and discusses various investment options and strategies. It highlights the importance of diversification and staying informed to manage risks and achieve financial security.

What is one way to bridge the gap when you lack enough funds to start a business?

• Start a crowdfunding campaign

• Sell personal assets

• Borrow from friends or family

• Invest in stocks

Which financial tool allows you to make purchases and pay later?

• Debit card

• Mortgage

• Personal loan

• Credit card

What is typically used as collateral in a mortgage?

• Property

• Stocks

• Jewelry

• A car

How do banks view borrowers with excellent credit scores?

• As unreliable borrowers

• As low-risk borrowers

• As average-risk borrowers

• As high-risk borrowers

What type of interest rate remains constant throughout the loan term?

• Floating rate

• Variable rate

• Fixed rate

• Adjustable rate

What is a key strategy to reduce risks in investments?

• Relying on luck

• Diversification

• Ignoring market trends

• Investing in a single asset

Which of the following is NOT a typical investment option?

• Bonds

• Stocks

• Real estate

• Credit cards