B.2 and B.3

Question 1

identify 2 types of payment methods

Answer 1

• cash
• credit cards
• debit cards
• direct debit
• payment technologies

Question 2

what is cash ?

Answer 2

type of liquid/current asset

Question 3

what are credit cards

Answer 3

a way of deferring payment at an agreed sumof creditor loan from the credit company

Question 4

what are debit cards

Answer 4

a direct link to your current account

Question 5

name 1 advantage and disadvantage of debit card

Answer 5

+can be used remotely via phone or online
- can be stolen

Question 6

name 1 advantage and disadvantage of cash

Answer 6

+ accepted in most places
- may not be suitable for large transactions
-can be stolen

Question 7

name 1 advantage and disadvantage of credit card

Answer 7

+ can be used for any amount up to a limit set by the card issuer so the customer does not incur high credit charges
- card issuer charges interest on the balance outstanding after the interest - free period

Question 8

name 1 advantage and disadvantage of direct debit

Answer 8

+ simple way to pay regular bills
- customer mus have sufficient money in their bank account to cover payment

Question 9

name 1 advantage and disadvantage of payment technologies

Answer 9

+ help consumers and enterprises to transfer money between buyers and sellers
- some of these may charge a fee

Question 10

name 1 advantage and disadvantage of cheque

Answer 10

+ more secure than cash
- cannot be payed remotely or online / take several days to clear