Payment Methods Quiz

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

• Can be used online

• Makes budgeting easier

• High risk of theft

• Only appropriate for large purchases

Which method of payment is described as having a low risk of theft and being widely accepted?

• Cash

• Debit card

• Cheque

• Credit card

What is a disadvantage of using a standing order?

• Payments can be easily cancelled

• Payments are taken regardless of the account balance

• Difficult to set up

• Requires face-to-face interaction

What is a disadvantage of using a charge card?

• Must be paid in full each month

• No protection if lost

• Limited to small transactions

• High interest rates

What is a common feature of both standard and packaged, premium accounts?

• Offers the holder a wide range of facilities

• Limited facilities

• Overdraft facilities could encourage overspending

• Course fees and student loans can be easily handled

Which account type may not offer value for money according to the disadvantages listed?

• Packaged, premium

• Standard

• Basic

• Student

What is the definition of "Expenditure"?

• The amount of money you need to cover all your expenses

• A type of savings account

• A government bond

• A type of investment in shares

What is a benefit of premium bonds?

• Guaranteed return on investment

• Chance of winning more than earned in interest

• Regular fixed returns

• High risk of losing investment

What is an advantage of investing in shares?

• Share prices are stable

• Shareholders receive fixed returns

• Potential for high reward due to fluctuating share prices

• No additional benefits as part owners

What is a disadvantage of investing in shares?

• Guaranteed returns

• No risk involved

• Share prices fluctuate, posing high risk

• Interest is earned on investments