Understanding Payment Methods

What is a cash payment?

• A cash payment is an investment in stocks.

• A cash payment is a form of credit transaction.

• A cash payment is a direct exchange of money for goods or services.

• A cash payment is a loan given to customers.

What are the advantages of using cash?

• Advantages of using cash include immediate transaction finality, privacy, no reliance on technology, and better budgeting control.

• Using cash requires a bank account for withdrawals.

• Cash is less secure than digital payment methods.

• Cash transactions are always traceable and recorded.

What are the disadvantages of cash payments?

• Cash payments are always secure and safe.

• Cash payments provide detailed transaction records.

• Cash payments are convenient for all transaction sizes.

• Disadvantages of cash payments include lack of transaction records, risk of theft, difficulty in tracking expenses, and inconvenience for large amounts.

How does a credit card work?

• A credit card works by allowing users to borrow money up to a limit for purchases, which they repay later.

• A credit card works by providing cash back on all transactions without any repayment.

• A credit card is a type of debit card that withdraws money directly from a bank account.

• A credit card allows users to earn interest on their purchases immediately.

What is one advantage of using a credit card?

• Offers unlimited spending without limits

• Earns high interest

• Builds credit history

• Provides cash back on all purchases

What is a disadvantage of credit card usage?

• Accumulation of debt due to high interest rates.

• Increased cash flow due to flexible payments.

• Improved credit score with regular usage.

• Rewards and cashback benefits for every purchase.

What is a bank transfer?

• A bank transfer is a type of loan from a bank.

• A bank transfer is a physical exchange of cash at a bank branch.

• A bank transfer is a method of transferring money between bank accounts.

• A bank transfer is a method of depositing cash into a bank vault.

What are the benefits of bank transfers?

• Complex procedures

• Limited accessibility

• The benefits of bank transfers include speed, security, convenience, and lower costs.

• High interest rates

What is a downside of bank transfers?

• Immediate availability of funds.

• High fees for small amounts.

• Delays in processing time.

• Unlimited transaction limits.

What is a check?

• A check is a type of bank account.

• A check is a written order to a bank to pay a specified amount from one account to another.

• A check is a form of digital currency.

• A check is a loan agreement between two parties.