Principles of Money Vocab Quiz

What is cash?

• A type of electronic payment

• Physical coins and paper bills

• A digital currency

• A type of credit card

Which of the following is a characteristic of a check?

• It is a digital currency

• It is a written order to pay someone from your bank account

• It is a type of credit card

• It is a form of cash

What is a credit card used for?

• To store physical cash

• To borrow money for purchases

• To write checks

• To deposit money into a bank account

Analyze the impact of using checks in today's digital world.

• Checks are the most common form of payment

• Checks are rarely used and have little impact

• Checks are still used for specific payments and offer a paper trail

• Checks have been completely replaced by digital payments

Plan a strategy for safely using a credit card to avoid debt.

• Use the card for all purchases

• Pay the full balance each month

• Only pay the minimum amount due

• Ignore the credit card bill

What is a difference between cash and a debit card?

• Cash is digital, debit cards are physical

• Cash can be lost or stolen, debit cards are safer

• Cash is linked to a bank account, debit cards are not

• Cash is a type of credit, debit cards are not

How does a debit card work?

• It allows you to borrow money

• It is linked directly to your bank account

• It is a form of cash

• It is a type of check

Design a plan to manage your monthly expenses using a debit card.

• Spend without tracking

• Track all expenses and ensure they do not exceed your bank balance

• Use the debit card only for large purchases

• Withdraw all money as cash

What is an electronic banking transfer?

• A method to write checks

• A way to manage money online

• A type of physical currency

• A form of credit card payment

Develop a comprehensive plan for using different financial instruments to manage a monthly budget.

• Use only cash for all transactions

• Use a combination of cash, debit cards, and electronic transfers to track and manage expenses

• Use only credit cards to earn rewards

• Use checks for all payments