Methods of Payment-Review

Which is an advantage of using cash?

• It is accepted almost everywhere in the US.
• You can spend more than you have. 
• If you lose it, it is gone. 
• It is safer than a card or check. 

Which method of payment should I use when making a small online purchase?

• Cash
• Credit Card
• Debit Card
• Check

What is a disadvantage of using a credit card?

• It is easy to use.
• You can spend more than you have. 
• It can be used in emergencies.
• Banks sometimes give rewards on credit cards. 

Which method of payment should I use when mailing money?

• Check
• Cash
• Credit Card
• Debit Card

Steve has a good job as well as a checking and savings account. When he went to the store to buy groceries, his total was $45.23. However, he only had $30 in cash on him. How should he pay for his groceries?

• Credit Card
• Check
• Debit Card
• He should get more money from an ATM. 

Mary has a part-time job. She can pay her bills but does not typically have much money left over. She gets into a car accident and must pay $400 for her car to be fixed. She only has $150 in her bank account and $24 in cash. How should she pay to fix her car?

• Check
• Cash
• Credit Card
• Debit Card

What is the difference between Debit and Credit?

• Debit uses money borrowed from the bank, Credit uses the money you already have.
• Credit uses borrowed money or the bank's money, Debit uses your money.  
• They are both cards, they are the same. 
• Debit charges interest until the balance is paid. Credit does not because you are using your own own money. 

Which payment method is actually a loan?

• cash
• debit card
• credit card
• check

Which payment methods often have a monthly fee involved?

• check and debit card
• check and credit card
• cash and check
• debit card and cash

Which payment method usually involves paying a yearly fee?

• credit card
• cash
• debit card
• check