WorksheetsUnderstanding Cash and Credit Purchases
Total questions: 15
Worksheet time: 8mins
What is one of the main benefits of making cash purchases?
You can build your credit score.
You avoid paying interest.
You can buy more expensive items.
You get rewards points.
Which of the following is a risk associated with credit purchases?
You might get a discount.
You can easily track your spending.
You may end up paying more due to interest.
You can build your credit score.
Why is budgeting important for cash purchases?
It helps you avoid impulse buying.
It allows you to pay interest.
It helps you build your credit score.
It gives you rewards points.
If you buy an item on credit with an interest rate of 10% per year, how much interest will you pay on a $100 purchase after one year?
$5
$10
$15
$20
Which payment method is generally better for avoiding debt?
Credit card
Cash
Loan
Installment plan
What is a common consequence of impulse buying?
Saving more money
Accumulating debt
Building a good credit score
Earning interest
How can interest rates affect the total cost of a credit purchase?
They decrease the total cost.
They have no effect on the total cost.
They increase the total cost.
They make the total cost unpredictable.
What is one advantage of using cash over credit for purchases?
You can buy items on sale.
You avoid interest charges.
You can build your credit score.
You get cash back rewards.
Which of the following is a good practice when budgeting for cash purchases?
Spend all your money at once.
Keep track of your expenses.
Ignore your income.
Use credit for large purchases.
If you have a credit card with an interest rate of 15% per year, how much interest will you pay on a $200 purchase after one year?
$15
$20
$25
$30
What is a potential downside of using credit for purchases?
You can track your spending.
You may have to pay interest.
You can earn rewards points.
You can build your credit score.
How does impulse buying typically affect your budget?
It helps you save money.
It keeps you within your budget.
It can lead to overspending.
It has no effect on your budget.
What is one way to compare different payment methods effectively?
Ignore the interest rates.
Consider the total cost including interest.
Only look at the monthly payments.
Choose the method with the longest repayment period.
Why might someone choose to make a purchase on credit instead of using cash?
To avoid paying interest.
To build their credit score.
To avoid tracking their spending.
To save money immediately.
What is a good strategy to avoid impulse buying?
Always carry a credit card.
Make a shopping list and stick to it.
Buy items on sale even if you don't need them.
Shop without a budget.
