1) If you wished to buy a new car which would be the best way of borrowing money? a) Getting an overdraft from the bank b) Taking out a bank loan c) Getting a Payday Loan 2) Out of all the ways of borrowing, which of the following is the one that should be avoided? a) Getting a bank loan b) Taking out a credit card c) Going to a Loan Shark 3) You want to take your partner out to a concert but you have run out of cash until you get paid at the end of the week, do you: a) Get a bank loan b) Borrow money from your parents c) Draw money out from a ATM using a credit card  4) Your car needs four new tyres which will cost £350 you don't have enough money in the bank. Choose the cheapest option a) Take out a bank loan b) As your bank for an overdraft allowance c) Take out a payday loan 5) It is your partner's birthday and you want to go away for a weekend, you will be paid in two weeks but don't have enough money in the bank at the moment - which is the cheapest option to pay for it? a) Paying for it on a credit card and then paying it off in full b) Going to a Loan Shark c) Taking out a bank loan 6) Which of the following borrowing methods charges the highest interest? a) An overdraft b) A credit card c) A bank loan 7) Which of the following borrowing methods charges the lowest interest? a) Using a Loan Shark b) Getting a Payday Loan c) Getting an Overdraft 8) What is the main advantage of using an overdraft facility with your bank? a) It gives you access to £10,000 b) It has the cheapest interest rate c) It is free 9) What is the main disadvantage of using an overdraft facility with your bank? a) It takes a long time to set up b) It has high interest rates c) The money you can borrow is limited depending on your finances 10) What is the main advantage of having a credit card? a) It is cheap b) It improves your "Credit Score" c) It is given to anyone 11) What is the main disadvantage of having a credit card? a) You could overspend and incur interest payments b) You have to pay for them c) You have to use it every month 12) What is the advantage of taking out a Bank Loan? a) You can easily obtain one b) You can buy big items like a car with reasonable interest rates c) Your bank gives them out interest free 13) What is the disadvantage of taking out a Bank Loan? a) You have to pay it back within an agreed period of time b) You have to pay it back immediately c) The interest rates are VERY high 14) What is the advantage of taking out a Pay Day Loan? a) It is the cheapest method b) It is good for emergency expenditure c) It is good because you don't pay any interest 15) What is the disadvantage of taking out a Pay Day Loan? a) You have to fill in lots of applications b) You can do it all the time c) You pay high interest and have to pay it back quickly 16) What are advantages of borrowing money from a Loan Shark? a) It is easy and flexible b) It is lawful c) There are no advantages

WAYS OF BORROWING MONEY

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