Understanding Buy Now Pay Later (BNPL)

Understanding Buy Now Pay Later (BNPL)

Assessment

Interactive Video

Business

9th - 10th Grade

Hard

Created by

Aiden Montgomery

FREE Resource

The video discusses the concept of Buy Now, Pay Later (BNPL) loans, comparing them to layaway plans and credit cards. It highlights the growing popularity of BNPL, especially among younger consumers, and explains how these loans work. The video also explores the potential drawbacks and risks, such as lack of regulation and the possibility of overspending. It delves into the business strategies of BNPL companies, revealing how they profit through merchant fees and encourage increased consumer spending. The video concludes with a call to action for viewers to support the channel.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main selling point of the turkey cheddar sandwich offer?

It's made with organic ingredients.

It comes with a free drink.

It can be paid for in installments.

It is available only for a limited time.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do BNPL loans differ from traditional layaway plans?

BNPL loans require a full upfront payment.

Layaway plans have higher interest rates.

Layaway plans deliver the product immediately.

BNPL loans allow immediate possession of the product.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key advantage of using BNPL loans?

They offer cash back rewards.

They have no interest if paid on time.

They improve your credit score.

They are available for all types of purchases.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a major concern regarding BNPL loans?

They are heavily regulated.

They have high interest rates.

They can lead to overspending.

They offer extensive rewards programs.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might BNPL loans not help in building credit history?

They are not reported to credit bureaus.

They have high interest rates.

They require a high credit score to use.

They are only available for small purchases.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential risk of the ease of use of BNPL loans?

It encourages saving money.

It leads to loan stacking.

It reduces consumer spending.

It improves credit scores.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do BNPL companies primarily earn revenue?

By selling customer data.

Via merchant fees.

By charging late fees.

Through high interest rates.

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