Payment Methods: Pros and Cons

Which of the following is a primary advantage of using credit cards for payments?

• No record of transactions

• Ability to make purchases even without immediate funds

• No risk of overspending

• No interest charges

What is a common disadvantage of using cash as a payment method?

• High transaction fees

• Risk of theft or loss

• Requires internet access

• Builds credit history

Which payment method typically offers the fastest transaction processing time?

• Bank transfer

• Cash

• Debit card

• Check

What is a significant disadvantage of using checks for payments?

• Instant processing

• High security

• Risk of bouncing due to insufficient funds

• No need for a bank account

Which of the following is an advantage of using mobile payment apps (e.g., Apple Pay, Google Pay)?

• Requires physical presence of both parties

• Limited to business hours

• Convenience and speed of transactions

• No digital record

What is a disadvantage of using credit cards for payments?

• No rewards or benefits

• High risk of fraud and identity theft

• No monthly statements

• Cannot be used online

Which payment method is best for budgeting and avoiding overspending?

• Credit card

• Cash

• Mobile payment

• Bank transfer

What is a key characteristic of debit card payments?

• Payment is deducted directly from the user’s bank account

• Payment is delayed until the end of the month

• No need for a bank account

• Unlimited spending regardless of balance

Which of the following is a disadvantage of using bank transfers for payments?

• Instantaneous processing

• May incur fees and take several days to process

• No need for recipient’s bank details

• Cannot be used for large amounts

What is an advantage of using electronic funds transfer (EFT) over cash payments?

• No digital record

• Higher risk of loss

• Can be done remotely and securely

• Requires physical presence