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The Cost of Building on Credit is a free printable Grade 3 to Grade 5 social studies worksheet on what an interest rate is, aligned to Common Core standard D2.Eco.10.3-5. It prints 8 questions with an answer key on its own sheet of paper, in 25 versions that each ask different questions, so no two pupils in the class work from the same page. Print it from the browser or download it as a PDF — no account, no email.

Set 21 of 25 · the same problems every time you open this link.

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Set 1 has all 25 in a single PDF. All 25 sets ask different questions.

The Cost of Building on Credit

D2.Eco.10.3-5

NameDate

Circle the best answer.

1.A government issues bonds. Who receives the interest?
  • A.The builders
  • B.The government
  • C.The people who lent by buying the bonds
2.Rates rise sharply. What happens to a building programme funded by borrowing?
  • A.Each home costs more to finance, so fewer can be built
  • B.Bricks get cheaper
  • C.Nothing changes
3.What does an interest rate measure?
  • A.The size of the lender
  • B.The cost of borrowing as a share of the amount borrowed
  • C.The length of the loan
4.Why might a government be charged less than a company?
  • A.Companies pay tax
  • B.It is more likely to repay, so the risk is lower
  • C.Governments are larger
5.Why does a lender charge interest at all?
  • A.The money could have earned elsewhere while it was lent
  • B.To discourage borrowing
  • C.Because notes wear out
6.The white paper says cost falls on borrowing. What does borrowing cost?
  • A.Nothing, if a government borrows
  • B.A fixed fee
  • C.Interest, on top of repaying what was borrowed
7.A family borrows to buy rather than wait seven years. What is the risk?
  • A.The house may move
  • B.The debt and its interest remain whatever happens to their income
  • C.Rates cannot change
8.Why is a rate expressed as a share rather than a sum?
  • A.Shares are shorter
  • B.Sums are secret
  • C.So loans of different sizes can be compared

LessonPrint · D2.Eco.10.3-5 · Set 21 · free to copy for classroom use

Answer key — The Cost of Building on Credit

Set 21. Prints on its own sheet.

  1. 1.The people who lent by buying the bonds
  2. 2.Each home costs more to finance, so fewer can be built
  3. 3.The cost of borrowing as a share of the amount borrowed
  4. 4.It is more likely to repay, so the risk is lower
  5. 5.The money could have earned elsewhere while it was lent
  6. 6.Interest, on top of repaying what was borrowed
  7. 7.The debt and its interest remain whatever happens to their income
  8. 8.So loans of different sizes can be compared

More practice for D2.Eco.10.3-5

Explain what an interest rate is.

Teaching this next? The Cost of Building on Credit is the 55-minute plan for it, with the misconceptions to expect.

All Grade 3 to Grade 5 worksheets

Last reviewed 2026-09-05. Aligned to D2.Eco.10.3-5 of the C3 Framework for Social Studies State Standards.