Financial Decision Making - Credit vs. Cash Quiz
Explore the psychology behind financial choices. Test your knowledge on using credit cards versus cash for purchases with our quiz.
#1
Which of the following statements is true about using credit cards?
It is always better to use cash than credit cards.
Using credit cards can help build a credit history.
Credit cards never charge interest.
Credit cards are not widely accepted.
#2
What is a key benefit of using cash for purchases?
Cash provides better security against fraud.
Cash allows for easier tracking of expenses.
Cash provides cashback rewards.
Cash can be used for online purchases.
#3
When comparing credit and cash, which of the following is a disadvantage of using credit?
Credit can be used to make larger purchases.
Credit cards often have fees and interest charges.
Credit is more convenient than cash.
Credit transactions are more secure.
#4
How does using credit impact your overall financial health?
Using credit has no impact on financial health.
Using credit can improve your credit score if managed responsibly.
Using credit always leads to debt.
Using credit reduces your ability to save money.
#5
What factor should you consider when deciding between using credit or cash?
The color of the item you want to purchase
The store's return policy
The item's price and your ability to repay the credit
The availability of discounts
#6
Which of the following is an advantage of using credit cards over cash?
Credit cards help you avoid impulse purchases.
Credit cards offer rewards such as cashback or points.
Credit cards can only be used for in-person purchases.
Credit cards have higher fees than using cash.
#7
How does using cash for purchases affect your budgeting?
Cash makes it easier to overspend since you can see the money leaving your wallet.
Cash helps you stick to a budget more easily.
Cash has no impact on budgeting.
Cash encourages saving rather than spending.
#8
Which of the following scenarios is an example of when it might be better to use cash instead of credit?
Purchasing a home
Buying groceries
Paying for a car repair
Booking a flight online
#9
Which of the following is a disadvantage of using cash for purchases?
Cash provides better security against fraud.
Cash can be lost or stolen more easily than credit cards.
Cash transactions are always slower than credit card transactions.
Cash transactions are more convenient than credit card transactions.
#10
In what situation might using credit be more beneficial than using cash?
When you want to avoid debt
When you need to make a large purchase and can pay it off over time
When you prefer to track your spending more closely
When you want to avoid credit card fees
#11
Which of the following is an advantage of using credit cards for purchases?
Credit cards make it easier to track your spending.
Credit cards offer lower interest rates than cash.
Credit cards have no fees associated with their use.
Credit cards offer better security against fraud than cash.
#12
When might using cash be a better option than using credit cards?
When you want to earn rewards points.
When you need to make a purchase online.
When you want to avoid interest charges.
When you need to make a large purchase and want to pay it off over time.
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