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Worksheets

Payment Methods

Total questions: 30

Worksheet time: 31mins

Name
Class
Date
1.

Which is an advantage of using cash?

a)

It is accepted almost everywhere in the UK.

b)

You can spend more than you have.

c)

If you lose it, it is gone.

d)

It is safer than a card or check.

2.
What is a disadvantage of using a credit card?
a)
It is easy to use.
b)
You can spend more than you have. 
c)
It can be used in emergencies.
d)
Banks sometimes give rewards on credit cards. 
3.
What is the difference between Debit and Credit?
a)
Debit uses money borrowed from the bank, Credit uses the money you already have.
b)
Credit uses borrowed money or the bank's money, Debit uses your money.  
c)
They are both cards, they are the same. 
d)
Debit charges interest until the balance is paid. Credit does not because you are using your own own money. 
4.

Which of the following is an advantage of using a credit card?

a)

Interest is charged for the use of a credit card.

b)

Consumers can purchase things now, and pay for them later in the event of an emergency.

c)

You could be a victim of identity theft.

5.

The purchase amount is immediately removed from a linked account.

a)

Debit Card

b)

Credit Card

c)

Stored-Value Card

6.

Payments can be made in the future.

a)

Debit Card

b)

Credit Card

c)

Stored Value Card

7.

If you make only the minimum payment each month, you will pay more in interest and it will take longer to pay off the balance.

a)

Debit Card

b)

Credit Card

c)

Store Value Card

8.

The amount in the account

a)

Balance

b)

Budget

c)

Interest

d)

Financial systems

9.

An estimate of income and bills

a)

Balance

b)

Budget

c)

Benefits

d)

Debts

10.

A written instruction in writing signed by the bank's customer telling the bank to pay an amount to a named person or business.

a)

Bankers Draft

b)

Direct Debit Mandate

c)

BACs Payment Schedule

d)

Cheque

11.

BACS stands for...

a)

Bankers' Automated Clearing Scheme

b)

Bankers' Automated Clearing Services

c)

Bankers' Automated Cashing Services

d)

Bankers' Automated Cashing Scheme

12.

Usually takes about 2 hours but is a same day payment method?

a)

Direct Debit

b)

BACS Direct Credit

c)

Standing Order

d)

Faster Payments

13.

For regular variable payments on unspecified dates.

a)

Cheque

b)

Direct Credit

c)

Cash

d)

Direct Debit

14.

Cash payment involves ____.

a)

cards

b)

coins

c)

pins

d)

signatures

15.

Apple pay is a form of ___.

a)

cash

b)

electronic transfer

c)

cheque

d)

installment

16.

When we buy a car on hire purchase, ____.

a)

the seller can take back the car if we fail to make a payment.

b)

the seller cannot take back the car, but can claim by charging higher interest rate.

17.

It is money in the form of notes and coins

a)

cash

b)

debit card

c)

credit card

d)

check

18.

Which of the following is a DISADVANTAGE of using CASH?

a)

makes sticking to a budget easier

b)

No transaction fees

c)

limited to spending what you have

d)

Instant money on hand

19.

Which of the following is a DISADVANTAGE of using CHECK?

a)

don’t have to carry around a lot of money

b)

reduce the risk of losing money through accident or theft

c)

have a record of purchases made with checks

d)

some businesses do not accept checks.

20.

Which of the following is an ADVANTAGE of using CHECK?

a)

takes time to write a check when you make a purchase.

b)

have a record of purchases made with checks

c)

inconvenient to carry a checkbook

d)

If your checkbook is lost or stolen, others may try to write checks on your account.

21.

Which of the following is an ADVANTAGE of using DEBIT CARD?

a)

enables you to get cash at many locations from ATMs

b)

Debit cardholders who use their cards infrequently may forget their PINs

c)

A debit card can be lost or stolen.

d)

Some people forget to enter amounts for their purchases in a transactions register

22.

Which of the following is a DISADVANTAGE of using DEBIT CARD?

a)

small, so it is convenient and easy to carry around.

b)

You can make purchases quickly and easily using a debit card.

c)

Debit cardholders who use their cards infrequently may forget their PINs

d)

Carrying it is safer than carrying cash or checks

23.

Which of the following is a DISADVANTAGE of using CREDIT CARD?

a)

easy to carry and use

b)

can purchase things now and pay for them later

c)

Fees and interest may be charged for the use of credit cards

d)

are safer to use than cash or checks, since there is a limit on the amount of money that can be lost if the card is stolen

24.

Which of the following is an ADVANTAGE of using ONLINE PAYMENT?

a)

You can buy goods and services nationwide or internationally.

b)

You may forget your password or user name

c)

If you make a purchase at a non-secure website, you could be a victim of identity theft.

d)

You may pay an additional shipping fee for goods purchased and sent to you

25.

What type of payment doesn't have a proof of purchases unless you save your receipts?

a)

Cash

b)

Credit Card

c)

Debit Card

d)

Online Banking

26.

Credit is used for:

(Select ALL that apply)

a)

Buying a home

b)

Student loans

c)

Large purchases (like washer & dryer, new phone, doctors bill)

d)

Emergencies (leaky roof, fix the brakes on a vehicle)

27.

Money borrowed with the expectation that you will pay it back is called:

a)

Interest

b)

Credit

c)

ATM Card

d)

Term

28.

The charge for the privilege of borrowing money; or the additional money you will pay with the initial amount you borrowed is called:

a)

Repayment

b)

Term

c)

Interest

d)

Credit

29.

How is the payment amount written on a cheque?

a)

Words

b)

Numbers

c)

Words and numbers

d)

Symbols

30.

How often do credit card companies usually send out statements?

a)

Weekly

b)

Monthly

c)

Quarterly

d)

Yearly