The Ultimate Cash, Credit or Debit Shopping Quiz

46 PLAYS

By: Staff

4 Min Quiz

Image: refer to hsw

About This Quiz

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?

Credit cards and debit cards are referred to as plastic money. They are cards made of plastic with which you can make purchases on the spot.

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When did the first universal credit card come on the scene?

The first universal credit card was introduced in 1950. Offered by Diner’s Club in the US, it was accepted at a variety of stores and business establishments.

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What is the major advantage of a debit card over a credit card?

The biggest advantage of a debit card over a credit card is that you don't have to be concerned with interest or monthly bills, as the debit card uses only the money you have in the bank.

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Who is Tony Howlett?

A banking consultant and information technology (IT) professional, Tony Howlett wrote the book entitled Open Source Security Tools.

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What is Tony Howlett’s bold claim?

Although he admits that his theory is rather outrageous, Howlett says that cash will die a natural death, as we will give it up for more convenient ways to make purchases.

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In what way is plastic money better than cash?

It is more convenient to pay with one plastic card than to carry around a lot of cash.

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What aspect does cash have that plastic cards don’t?

Paying in cash renders the buyer completely anonymous, a debit or credit card can be tracked easily.

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Which one of the following statements is true?

In 2006 there were more than 984 million credit and debit card accounts in the US, as this number of cards were issued by just Visa and MasterCard.

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How do credit cards and debit cards provide proof of ownership?

Credit cards and debit cards provide proof of ownership because your name printed on the front of the card and your signature is on the back. Some may have your photo as well.

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If your credit card is lost or stolen, how much do you have to pay for any merchandise that was bought with your card?

According to the Fair Credit Billing Act in the US, the owner of a lost or stolen credit card has to pay up to $50 worth of any purchases made by the perpetrator.

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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?

According to the Electronic Fund Transfer Act, if a debit card is lost or stolen, the cardholder is liable for $50 as long as he or she informs the bank within two days of discovery. After that, his/her responsibility increases to $500.

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What is a PIN?

A PIN is a personal identification number, which most banks offer on their debit cards

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In the case of loss or theft, why is a debit card more secure for the owner than a credit card?

Since most debit cards have with personal identification numbers that only the cardholder knows, a thief would not be able to use the card. That makes it more secure than a credit card, on which a thief can have a field day racking up purchases.

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How do credit card companies make money?

Credit card companies make their money by charging interest on the cardholders’ balance each month which, due to people’s tendency to defer payment, adds up to quite a bundle.

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On average, how much credit card debt does an American incur?

According to US News and World Report, a credit card user in the US owes an average of $16,635 to his or her credit card company.

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How do banks make money from debit cards?

While most banks in the US do not charge clients for a debit card account, they may charge an overdraft fee of about $35. For the banking industry, this adds up to a tidy $17.5 billion a year.

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In terms of modes of payment, which is the wisest method to use?

Debit cards are the most effective way to pay. They are secure and do not incur any charges, as long as you don’t go into overdraft.

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How does making purchases in cash rather than plastic money help you economize?

According to studies of shopping behavior, people who pay in cash are more cautious about what they spend their money on and don’t make purchases as blithely as they do with credit or debit cards.

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What is the pain of paying?

The pain of paying refers to the immediate sense of loss you feel when you pay in cash and watch your money slip through your fingers. With plastic money, that feeling is not aroused because you don’t actually see the dollars being taken from you. What’s more, the payment is deferred until the bills come in.

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What is the major downside of using cash instead of plastic?

The major problem with using cash is that if it’s lost or stolen, your money is gone with the wind. With a credit or debit card, even if it is lost or stolen, your money is much more secure.

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