Personal Finance Quiz

Which form of payment uses money directly from your bank account?

• Credit card

• Debit card

• Prepaid card

• Mobile payment app

Which of the following is a benefit of using cash?

• Builds your credit score

• No risk of debt or interest charges

• Earns you rewards points

• Can be easily replaced if lost

If you use a credit card and do not pay the full balance each month, what will happen?

• You get charged a late fee only

• Your bank will close the card

• You pay interest on the unpaid balance

• Your credit score improves

Which payment method is most accepted online?

• Cash

• Credit card

• Personal check

• Coins

Which payment method allows you to spend only what you load onto it?

• Debit card

• Prepaid card

• Credit card

• Gift card

What is one risk of using a debit card?

• You can build credit history

• You may spend more money than you have and get overdraft fees

• You pay interest charges

• You earn cash back automatically

Which payment method can help you build a credit history if used responsibly?

• Cash

• Credit card

• Debit card

• Prepaid card

If you lose a prepaid card, what is a possible problem?

• You will be charged interest

• You may lose the money loaded on it

• The bank will send you more money

• It will build your credit score

Which payment method requires a smartphone and internet connection?

• Cash

• Mobile payment app

• Debit card

• Personal check

When using a credit card, what should you do to avoid paying interest?

• Only use your card for emergencies

• Pay the full balance every month

• Use your card for every purchase

• Ignore your monthly statement