Advantages and Disadvantages of Payment Methods

Which of the following is an ADVANTAGE of using CASH?

• almost impossible to track

• can be lost or stolen

• limited to spending what you have

• people think twice before making an impulse purchase

Which of the following is a DISADVANTAGE of using CASH?

• makes sticking to a budget easier

• No transaction fees

• limited to spending what you have

• Instant money on hand

Which of the following is a DISADVANTAGE of using CHECK?

• don’t have to carry around a lot of money

• reduce the risk of losing money through accident or theft

• have a record of purchases made with checks

• some businesses do not accept checks.

Which of the following is an ADVANTAGE of using CHECK?

• takes time to write a check when you make a purchase.

• have a record of purchases made with checks

• inconvenient to carry a checkbook

• If your checkbook is lost or stolen, others may try to write checks on your account.

Which of the following is an ADVANTAGE of using DEBIT CARD?

• enables you to get cash at many locations from ATMs

• Debit cardholders who use their cards infrequently may forget their PINs

• A debit card can be lost or stolen.

• Some people forget to enter amounts for their purchases in a transactions register

Which of the following is a DISADVANTAGE of using DEBIT CARD?

• small, so it is convenient and easy to carry around.

• You can make purchases quickly and easily using a debit card.

• Debit cardholders who use their cards infrequently may forget their PINs

• Carrying it is safer than carrying cash or checks

Which of the following is a DISADVANTAGE of using CREDIT CARD?

• easy to carry and use

• can purchase things now and pay for them later

• Fees and interest may be charged for the use of credit cards

• are safer to use than cash or checks, since there is a limit on the amount of money that can be lost if the card is stolen

Which of the following is an ADVANTAGE of using CREDIT CARD?

• easy to forget that each time a credit card is used, debt is created; too much debt might be difficult to repay

• Fees and interest may be charged for the use of credit cards

• can purchase things now and pay for them later

• none of the above

Which of the following is an ADVANTAGE of using ONLINE PAYMENT?

• You can buy goods and services nationwide or internationally.

• You may forget your password or user name

• If you make a purchase at a non-secure website, you could be a victim of identity theft.

• You may pay an additional shipping fee for goods purchased and sent to you

Which of the following is a DISADVANTAGE of using ONLINE PAYMENT?

• You can make payments from your home.

• It’s convenient.

• You don’t need an envelope, stamps, and a walk to the mailbox to send in your payment.

• You may pay an additional shipping fee for goods purchased and sent to you