ITB: Chapter 8-1 Forms of Financial Exchange

What is the most commonly used form of payment?

• Cash

• Credit card

• I.O.U.

• Debit card

What is the main advantage of using cash as a form of payment?

• Legally endorsed

• Accepted everywhere

• Easy to use

• Not easily stolen

What is the main disadvantage of using cash as a form of payment?

• Easily stolen

• Legally endorsed

• Easy to use

• Accepted everywhere

What is a check?

• A form of payment that is dated and signed by the payor

• A plastic card used for electronic payments

• A form of payment deducted directly from the bank account

• A legally endorsed coins and paper currency

What is the preferred method of payment for most retail transactions?

• Check

• Cash

• Credit card

• Debit card

What is the main advantage of using a credit card?

• Convenience

• Overspending

• Grace period

• High interest rates

What is the main disadvantage of using a credit card?

• Convenience

• Overspending

• High interest rates

• Grace period

What is the main advantage of using a debit card?

• Direct deduction from bank account

• Convenience

• Overspending

• Grace period

What is the main disadvantage of using a debit card?

• Responsibility for fraudulent charges

• Grace period

• Overspending

• Convenience

What is the potential liability for fraudulent charges when using a debit card?

• Up to $300 per day

• Up to $500 per day

• Up to $100 per day

• Up to $200 per day