Payment methods

Which of the following is an advantage of using a credit card?

• Interest is charged for the use of a credit card.

• Consumers can purchase things now, and pay for them later in the event of an emergency.

• You could be a victim of identity theft.

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The purchase amount is immediately removed from a linked account.

• Debit Card

• Credit Card

• Stored-Value Card

Payments can be made in the future.

• Debit Card

• Credit Card

• Stored Value Card

There is an assigned spending limit.

• Debit Card

• Credit Card

• Stored Value Card

Your credit rating is affected.

• Debit Card

• Credit Card

• Store Value Card

If you make only the minimum payment each month, you will pay more in interest and it will take longer to pay off the balance.

• Debit Card

• Credit Card

• Store Value Card

Spending is limited to the amount on the card.

• Debit Card

• Credit Card

• Store Value Card

Which payment method would be the best choice for the following scenario:

You need to purchase a new Air Conditioning unit for your house. You do not have the funds available currently to cover the full cost. You will need to pay in installments.

• Debit Card

• Credit Card

• Cashier's Check

• Money Order

Interest is added into the principal

• Simple interest

• Compound interest

• Annual interest

• Gucci interest

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• Compound interest

• Annual interest

• Account interest

• Simple interest