With so many things to buy in today’s consumer-oriented world, shoppers have a variety of ways to pay for their purchases. They can pay in cash, by credit card or by debit card. Each mode of payment has its distinct advantages and disadvantages. Take this quiz and find out which may be the most effective method for you.
What is plastic money?
play money that has no value, like Monopoly money
money that is versatile and can be exchanged for foreign currency
credit cards or debit cards
When did the first universal credit card come on the scene?
What is the major advantage of a debit card over a credit card?
You don’t have to pay interest or monthly bills.
You know how much money you have, and you can spend it.
You don’t have to provide as much personal information to obtain one.
Who is Tony Howlett?
the inventor of the ATM
the head of the Federal Reserve Bank
What is Tony Howlett’s bold claim?
that we will eventually stop using cash
that we will ultimately not use money in any form
that credit cards will become obsolete
In what way is plastic money better than cash?
It is easier to spend.
It is more hygienic.
It is more convenient to use.
What aspect does cash have that plastic cards don’t?
Which one of the following statements is true?
In 2006 there were exactly 984 million credit and debit card accounts in the US.
In 2006 there were fewer than 984 million credit and debit card accounts in the US.
In 2006 there were more than 984 million credit and debit card accounts in the US.
How do credit cards and debit cards provide proof of ownership?
They have your name and signature on them.
They have your passport number on them.
They have your thumbprint on them.
If your credit card is lost or stolen, how much do you have to pay for any merchandise that was bought with your card?
up to $50
up to $150
up to $500
Under the Electronic Fund Transfer Act, what is the penalty for waiting more than two days to inform the bank about a lost or stolen debit card?
The bank will not issue you a new card.
You are obliged to pay $500.
You are responsible for the full amount of all purchases made during the lag time.
What is a PIN?
a phony identity name
a private insurance numeral
a personal identification number
In the case of loss or theft, why is a debit card more secure for the owner than a credit card?
because the owner can empty out his bank account before anyone tries to access it
because only the owner knows the code to access the account
because it has the owner’s fingerprint on it
How do credit card companies make money?
by making a commission on each purchase
by investing the money in mutual funds
by charging interest
On average, how much credit card debt does an American incur?
How do banks make money from debit cards?
by charging overdraft fees
by charging a withdrawal fee
by imposing service charges
In terms of modes of payment, which is the wisest method to use?
How does making purchases in cash rather than plastic money help you economize?
You tend to spend less with cash.
There is less risk of clerical errors.
You can return things more easily and get your money back on the spot.
What is the pain of paying?
the hassle of paying monthly credit card bills
the angst of watching your hard-earned cash leave your hands
the guilt incurred by using a credit card to buy things you can’t really afford
What is the major downside of using cash instead of plastic?
You have no automated record of how much you spend.