5.10C

Nelda gets a cable bill every month in her mailbox. She decided that she wants her bill automatically deducted from her checking account every month so she does not have to worry about when to pay. She went on the cable company's internet website to set up the automatic payment. This type ofautomatic payment is called_______?

• an electronic payment 
• a cash transaction
• a savings payment
• a check payment

What is the greatest disadvantage of paying for items with credit cards?

• credit card payments are immediately taken out of your checking accounts
• credit cards can put many people in debt and can take many years to pay off
• credit cards are difficult to use in most retail stores
• you cannot buy very expensive items with credit cards

What is the greatest advantage of writing checks as a form of payment?

• It is quicker to write checks than any payment.
• Checks do not get deducted from your account for at least one month after your write them
• checks are easy to keep organized and you can immediately keeps records of who you have paid and for what
• checks are accepted everywhere that something is being sold

Ronny signs up to pay his monthly water bill using an electronic payment. Which is an advantage of electronic payments?

• they are always safe
• they save time
• all businesses accept them
• no technology is needed

Aurelio needs to get $100 cash today in order to pay for rides and foods at the carnival for him and his children. He goes to find an ATM to get his money. Which of the following would enable him to get his money quickly out of his checking account?

• credit card
• debit card
• electronic transfer
• check

Sally wants to use her credit card to pay for a mountain bike. What is the disadvantage of using the credit card?

• She does not have to carry cash in her purse.
• she could borrow the money for the bike until next month
• she may earn rewards such as free air miles
• she might have to pay interest