Unit quiz: Interest, borrowing and financial safeguards

Check understanding, separately from reading

5 questions · 80% to pass · no timer. This quiz checks the lessons in this unit. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

Saving a lesson records reading only. Previous lesson completions have not been converted into passing scores. You can continue reading without a pass; the assessment remains unpassed.

Question 1

If earned interest stays in an interest-bearing account, later interest may be earned on it too. Withdrawing each interest payment removes that source of compounding.

What creates interest on interest?Leaving interest in the amount that earns interestRenaming the account without changing its terms

Question 2

Two loans can offer different terms: one lowers the monthly payment by extending repayment. Compare total payments and flexibility, not payment size alone.

What is insufficient for comparing loans?Reviewing total cost and contract termsMonthly payment alone

Question 3

An error in a report can influence a score. Reviewing and disputing inaccurate information addresses the underlying record rather than treating a number as destiny.

What does a credit score not measure?A person’s moral worthSelected aspects of modeled credit risk

Question 4

A policy covers a type of loss but excludes a specific cause. The broad category name is not enough to establish whether a particular claim is covered.

What must be read before assuming coverage?Only the policy’s product nameExclusions, limits and the actual covered event

Question 5

Money needed for a near-term essential payment has little room for market loss. A long-term discretionary goal may allow a different risk profile.

What should come before choosing an investment?The goal’s timing and capacity for lossThe most exciting recent return

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