Methods of Payment/Financial Literacy

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.

There is an assigned spending limit.

• Debit Card

• Credit Card

• Stored Value Card

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. 

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. 

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. 

Responsible use of credit means I should _____.

• use my credit card to buy everything on discount.

• use it to pay my bills because it is convenient.

• have many different credit cards from different banks to make full use of their promotions.

• keep track of how much money is spent.

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 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