Comparing Payment Methods: Pros and Cons

What is one limitation of using cash as a payment method?

• It can be easily tracked for budgeting purposes.

• It is not accepted for online purchases.

• It incurs high transaction fees.

• It offers rewards and cashback.

Which security feature is commonly associated with debit cards to prevent unauthorized use?

• Chip and PIN technology

• Biometric authentication

• Magnetic stripe

• Contactless payment

How do credit card interest rates typically affect the cost of using a credit card?

• They decrease the total amount owed if paid on time.

• They increase the total amount owed if the balance is not paid in full.

• They have no impact on the total amount owed.

• They are only applied to cash advances.

What is a common method for reloading a prepaid card?

• Direct deposit from an employer

• Automatic transfer from a savings account

• Cash deposit at a bank branch

• Transfer from a credit card

Which feature of mobile payment apps enhances their convenience for users?

• Requirement of physical presence

• Ability to store multiple payment methods

• High transaction fees

• Limited to specific devices

Which payment method is generally the most universally accepted?

• Cash

• Debit cards

• Credit cards

• Mobile payment apps

What is a potential benefit of using cash over other payment methods?

• It provides a detailed transaction history.

• It helps in avoiding overspending.

• It offers fraud protection.

• It earns interest on balances.

How does the use of a debit card help in managing personal finances?

• It allows spending beyond available funds.

• It automatically categorizes expenses.

• It limits spending to available account balance.

• It offers high credit limits.

What is a common drawback of using credit cards if not managed properly?

• They have no impact on credit score.

• They can lead to high-interest debt.

• They require immediate payment.

• They are not accepted internationally.

Which option is typically available for reloading a prepaid card?

• Writing a check

• Using a mobile payment app

• Bank transfer

• Cryptocurrency exchange