Credit Card Spending Quiz

Why do people tend to spend more money when using credit cards instead of cash?

• Credit cards are more valuable than cash.

• It's easier to see the money with credit cards.

• Credit cards offer less time to pay.

• People don't see the money leave their wallets.

What did the study by professors Drazen Prelec and Duncan Simester find about spending with credit cards?

• People spent the same amount with cash and credit cards.

• People spent less when using credit cards.

• People were willing to pay more for items with credit cards.

• People saved more money using credit cards.

According to the Federal Reserve Bank of Boston, what was the average transaction amount using cash?

• $112

• $22

• $50

• $75

What is "payment coupling"?

• The concept of paying with cash and card together.

• The time between buying something and paying for it.

• Using multiple credit cards for one purchase.

• Paying for items in pairs.

How do credit cards make impulse buying easier?

• They require immediate payment.

• They make spending feel less painful.

• They limit purchasing options.

• They provide instant cash.

What benefit do credit cards offer over cash?

• They automatically save money.

• They come with rewards and protections.

• They eliminate the need for budgeting.

• They prevent all overspending.

Why might someone choose to use a credit card in an emergency?

• Stores always prefer credit cards.

• Credit cards are free to use.

• They may not have enough cash on hand.

• Cash is always unsafe.

What is one positive aspect of using cash for purchases?

• Cash purchases are always cheaper.

• Cash is accepted everywhere.

• People feel more connected to their purchases.

• Cash offers more rewards.

What did the study find about how much more people spend using credit cards compared to cash?

• 5% to 10% more

• 12% to 18% more

• 20% to 25% more

• 30% to 35% more

How can using a credit card wisely benefit someone?

• By allowing unlimited spending

• By helping to build a credit score

• By providing free items

• By eliminating the need for cash