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Principles of Money Vocab Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is cash?

a)

A type of electronic payment

b)

Physical coins and paper bills

c)

A digital currency

d)

A type of credit card

2.

Which of the following is a characteristic of a check?

a)

It is a digital currency

b)

It is a written order to pay someone from your bank account

c)

It is a type of credit card

d)

It is a form of cash

3.

What is a credit card used for?

a)

To store physical cash

b)

To borrow money for purchases

c)

To write checks

d)

To deposit money into a bank account

4.

Analyze the impact of using checks in today's digital world.

a)

Checks are the most common form of payment

b)

Checks are rarely used and have little impact

c)

Checks are still used for specific payments and offer a paper trail

d)

Checks have been completely replaced by digital payments

5.

Plan a strategy for safely using a credit card to avoid debt.

a)

Use the card for all purchases

b)

Pay the full balance each month

c)

Only pay the minimum amount due

d)

Ignore the credit card bill

6.

What is a difference between cash and a debit card?

a)

Cash is digital, debit cards are physical

b)

Cash can be lost or stolen, debit cards are safer

c)

Cash is linked to a bank account, debit cards are not

d)

Cash is a type of credit, debit cards are not

7.

How does a debit card work?

a)

It allows you to borrow money

b)

It is linked directly to your bank account

c)

It is a form of cash

d)

It is a type of check

8.

Design a plan to manage your monthly expenses using a debit card.

a)

Spend without tracking

b)

Track all expenses and ensure they do not exceed your bank balance

c)

Use the debit card only for large purchases

d)

Withdraw all money as cash

9.

What is an electronic banking transfer?

a)

A method to write checks

b)

A way to manage money online

c)

A type of physical currency

d)

A form of credit card payment

10.

Develop a comprehensive plan for using different financial instruments to manage a monthly budget.

a)

Use only cash for all transactions

b)

Use a combination of cash, debit cards, and electronic transfers to track and manage expenses

c)

Use only credit cards to earn rewards

d)

Use checks for all payments

11.

What is a similarity between a check and a debit card?

a)

Both are forms of cash

b)

Both are linked to a bank account

c)

Both are types of credit cards

d)

Both are digital currencies

12.

Why might someone choose to use a credit card instead of cash?

a)

To avoid paying interest

b)

To borrow money for purchases

c)

To avoid carrying physical currency

d)

To write checks

13.

What is an electronic funds transfer (EFT)?

a)

A physical transfer of cash

b)

The electronic movement of money between accounts

c)

A type of credit card transaction

d)

A method to write checks

14.

Investigate how electronic funds transfers have changed the way people manage their finances.

a)

They have made it harder to track spending

b)

They have made managing finances more convenient and faster

c)

They have increased the use of cash

d)

They have eliminated the need for bank accounts

15.

Evaluate the benefits and drawbacks of using cash versus electronic banking transfers.

a)

Cash is always safer than electronic transfers

b)

Electronic transfers are more convenient but require internet access

c)

Cash is more convenient than electronic transfers

d)

Electronic transfers are slower than cash transactions

16.

Consumers can purchase items now and pay for them later.

a)

Debit Card

b)

Credit Card

c)

Both

17.

Rosa’s gas pump went out as she was driving her car to work. Since she did not have enough money to cover the cost to replace the pump, she used a card that allowed her to pay later. What card did she use?

a)

Debit Card

b)

Credit Card

c)

Both

18.

To avoid carrying cash, Ned pays for his lunch using this card. Each time he uses this card his checking account decreases. Which card did he use?

a)

Debit Card

b)

Credit Card

c)

Both

19.

Joseph applied for a card and was approved with a monthly spending limit for $200. Which type of card did he get?

a)

credit card

b)

debit card

c)

either type of card

d)

neither type of card

20.

Tanya has a card issued to her by her bank that is linked to her checking account at the bank. Any charges she makes on the card are directly withdrawn from her account. Which type of card does Tanya have?

a)

credit card

b)

debit card

c)

either type of card

d)

neither type of card