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Payment Methods Review Assignment

Total questions: 25

Worksheet time: 38mins

Name
Class
Date
1.
Which method of payment should I use when mailing money?
a)
Check
b)
Cash
c)
Credit Card
d)
Debit Card
2.
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. 
3.

Cash payment involves ____.

a)

cards

b)

coins

c)

pins

d)

signatures

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.

Which payment method would be the best choice for the following scenario:

You need to purchase a new Air Conditioning unit for your house. You do not have the funds available currently to cover the full cost. You will need to pay in installments.

a)

Debit Card

b)

Credit Card

c)

Cashier's Check

d)

Money Order

6.
Emma goes to the store to buy groceries. To pay for the groceries, she slides her card through a card reader and enters a special code.
a)
Cash
b)
Debit Card
c)
Credit Card 
d)
Check
7.
Randy wants to order a new couch from a department store’s website. He uses the online guest checkout and types in his name, address, and card number. It takes him a few months to pay off the couch.
a)
Cash
b)
Debit Card
c)
Credit Card
d)
Check
8.
Requires a PIN.
a)
Cash
b)
Debit Card
c)
Credit Card
d)
Check
9.
Can charge interest, late fees, and/or annual fees.
a)
Cash
b)
Debit Card
c)
Credit Card
d)
Check
10.
Which of the following is not something that you fill out on a check?
a)
your signature 
b)
the date
c)
your birthdate 
d)
who the check is made payable to 
11.

A written document telling the bank to pay a specific amount is called a

a)

Check

b)

Debit Card

c)

Budget

d)

Expense

12.

Your credit score is affected when using this payment method.

a)

Debit Card

b)

Credit Card

c)

Store Value Card

13.

What must be used to do online banking?

a)

Cash

b)

Debit Card

c)

Internet

14.

True or False: When you use a credit card, the amount you spend is immediately deducted from your bank account.

a)

True

b)

False

15.

True or false: When you have a debit card, you use a personal identification number (PIN) when you make purchases for security purposes.

a)

True

b)

False

16.

When you make a purchase with a debit card, the money is immediately deducted from your bank account.

a)

True

b)

False

17.

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

a)

easy to forget that each time a credit card is used, debt is created; too much debt might be difficult to repay

b)

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

c)

can purchase things now and pay for them later

d)

none of the above

18.

This form of payment requires an application form.

a)

Cash

b)

Check

c)

Debit Card

d)

Credit Card

e)

Electronic Banking

19.

Tom wants to use a form of payment that comes out of his checking account immediately. Which form of payment should Tom use?

a)

Cash

b)

Check

c)

Debit Card

d)

Credit Card

e)

Electronic Banking

20.

Benefits of credit cards include:

a)

Safe and convenient

b)

Credit cards typically offer bonuses and rewards

c)

They allow you to purchase items online

d)

All of the above

21.

When you buy something with a credit card, which of the following will usually save you money over the long run?

a)

Paying the entire amount owed each month

b)

Paying a small portion of the amount owed over a longer period of time

c)

Paying a small portion of the amount owed each month

d)

Paying the entire amount owed, but only every other month

22.

Which one is NOT a benefit of having a credit card?

a)

It can raise a person's standard of living

b)

It is convenient

c)

A customer is charged interest

d)

It increases the financial options available to a customer

23.

Which payment method is most likely to incur interest charges if not paid off in full each month?

a)

Cash

b)

Debit Card

c)

Credit Card

d)

Check

24.

True or False: A debit card transaction can be declined if there are insufficient funds in the account.

a)

True

b)

False

25.

Which of the following payment methods requires you to write the payee's name and the amount on a physical document?

a)

Cash

b)

Debit Card

c)

Credit Card

d)

Check