4 - Transactions & borrowing

The term used to describe the exchange of money is...

• Transition

• Transaction

• Transfer

Disadvantages of physical currency include...

• You can only spend what you’ve got

• Hard to trace if stolen

• Easy to use

• Carrying large amounts is a security risk

When using a debit card, you can only spend the amount of money you have available in your account.

• True

• False

On completion of a transaction with a debit card, the money is removed from your account immediately

• True

• False

How long does it usually take for a cheque to clear?

• 1-2 days

• 3-4 days

Credit cards are a form of short term loan.

• True

• False

Anything you spend on a credit card will be added to your bill that will be payable at the end of each month.

• True

• False

Failing to pay off the whole amount of money owed on a credit card will result in...

• Higher interest payments and charges

• Lower interest payments and charges

Jemma gets paid on different days of the month, and sometimes her direct debit payments are due before she has been paid, resulting in additional charges. What facility could her bank provide to cover her for this?

• Personal Loan

• Overdraft

• Credit Card

A personal loan from your bank will be more expensive than credit cards.

• True

• False