Ways to pay: cash, check, debit card, credit card and mobile payments

Grade 12 Social Studies Worksheet

Circle the best answer.

1. Read this first

   Use this

   Cards A to D on checks and cards (card A is real data; card B is real data; card C is made up). Card A, "Noncash payments in the United States, 2018, 2021 and 2024". Who made it: the Federal Reserve (federalreserve.gov), read November 14, 2026. Table, columns Year | Checks (billions) | Check value ($ trillions) | Average check ($) | Debit card payments (billions) | Credit card payments (billions): 2018 | 13.5 | 25.02 | 1,854 | 86.6 | 44.6; 2021 | 11.0 | 26.37 | 2,386 | 106.7 | 51.0; 2024 | 9.2 | 24.45 | 2,653 | 120.6 | 67.1. Average 2024 payment, in dollars: debit card | 41; credit card | 97. Value of card payments in 2024 ($ trillions): debit card | 4.99; credit card | 6.51. Note: a payment is counted once, whoever makes it; all amounts are in dollars of the year shown. Card B, "Consumer Price Index, annual average". Who made it: the Bureau of Labor Statistics (bls.gov). Table, columns Year | CPI-U (1982-84 = 100): 2018 | 251.107; 2021 | 270.970; 2024 | 313.689. Card C, "Treasurer's memo (made up)". Who made it: written for this sheet. Summary in our words, not a quotation: Checks are over. We will pay every supplier bill by credit card from now on.

2. 1.

   Jun writes one claim from card A for a report on checks since 2018. Which claim does the table support best?

   • Checks fell about a third in number, 13.5 to 9.2 billion, but 2 percent in value
   • Checks fell by almost a third in number and in value, as the table shows
   • Checks have nearly vanished, since fewer than 10 billion were written in 2024
   • People left checks for cards because cards cost less, so check value fell with it
3. 2.

   Pia reads cards A and B. Did the average check rise in real terms by 2024? Which statement fits both cards?

   • It depends on the start year: up 15 percent from 2018, down 4 percent from 2021
   • It rose about 43 percent since 2018, which is the rise in the average check
   • It rose from either start year, because the average check was higher in 2021 and 2024
   • It fell in real terms from 2018, because prices rose between 2018 and 2024
4. 3.

   Tala tests the memo on card C against card A. Which reading of the evidence is best?

   • The memo is right, because suppliers moved to cards, as the fall in checks shows
   • The memo is right, since 187.7 billion card payments dwarf 9.2 billion checks
   • The memo overlooks size: the average check was $2,653 in 2024, a credit card $97
   • The memo is wrong, since check value is still growing each year, to $26.37 trillion
5. 4.

   A student says debit is the most-used card, so it moves the most money. Bo checks card A. Which reading corrects the student?

   • Credit moves more because credit users are richer than debit users, on average
   • Debit moves the most money, since $4.99 trillion on 120.6 billion payments beats credit
   • Payments and dollars differ: credit moved more dollars on fewer payments than debit
   • Credit passed debit on both measures in 2024, in count and in dollars moved by each

6. Use this

   Cards A to D on the cost of paying by card (card A is a summary; cards B to D are made up). Card A, "Grace period". Source: Consumer Financial Protection Bureau, read November 2026. Summary in our words, not a quotation: Paying a credit card bill in full by the due date avoids interest on purchases. Paying only part means interest can be charged on what is left unpaid. Cash advances usually start charging interest on the day the cash is taken. Card B, "One club credit card (made up)". Who made it: written for this sheet. Summary in our words, not a quotation: Purchases: 24 percent a year, none if the bill is paid in full by the due date. Cash advances: 29 percent a year from the day taken, plus a fee of 5 percent of the cash. The card gives 1.5 percent of every purchase back to the club. Card C, "The club's need (made up)". Who made it: written for this sheet. Summary in our words, not a quotation: The club needs $400 for tent rental and will have the money back on day 20. The card's bill is due on day 28. Card D, "A treasurer's note (made up)". Who made it: written for this sheet. Summary in our words, not a quotation: Put everything on debit: it spends the club's own money, so it is always cheaper than credit. Card E, "Loss rules for cards". Source: Consumer Financial Protection Bureau, on Regulation E (debit cards and electronic transfers) and Regulation Z (credit cards), read November 2026. Summary in our words, not a quotation: A lost debit card reported within 2 business days of learning of the loss costs the lesser of $50 or the amount taken. After 2 business days the cardholder can owe up to $500. For unauthorized electronic transfers that show on a statement and go unreported for 60 days, the loss after that point has no limit. A lost credit card used before it is reported costs at most $50.

7. 5.

   The club buys $400 of supplies and leaves the bill unpaid 30 more days. Ari weighs the reward against interest. What is the verdict?

   • Carrying the bill wins: the $6 reward beats a yearly rate of 24 percent on $400
   • It breaks even at $6, because 1.5 percent a month equals 24 percent a year
   • Carrying the bill loses money: the $6 reward is less than about $8 of interest
   • The reward settles it, since $6 is paid on the purchase and interest is a later risk
8. 6.

   A club's debit card is used for $900 and reported 5 business days after the loss was noticed. Zee applies the rule on card E. What is the most it could owe?

   • $50, the same limit as for a credit card, since $50 is the usual limit on a card
   • The whole $900, since the report came late and the whole amount is then the club's
   • Up to $500, since the report came after 2 business days and the $50 limit is gone
   • $0, since a debit card spends the club's own money and the bank pays the rest
9. 7.

   Noah tests the treasurer's note on card D against card E. Which verdict is best?

   • Right: debit spends the club's own money, so it cannot cost more than credit's $50 cap
   • Right: the card gives the club 1.5 percent back, which debit would not give
   • Wrong: debit is dearer than credit in each case, since debit losses are not capped
   • Unproven: debit has no interest, but a late loss can cost up to $500 of the club's cash

10. Use this

    Cards A to C on card fees at a shop (all made up). Card A, "A shop's first year (made up)". Who made it: written for this sheet. Summary in our words, not a quotation: The shop pays its card processor 2 percent of every card sale and nothing on cash sales. Card sales are 70 percent of all sales. The shop sets one price for everyone, high enough to cover its costs and leave the same profit as with no card fees. A $20.00 item would cost $20.00 if no one used cards. Card B, "A shop's second year (made up)". Who made it: written for this sheet. Summary in our words, not a quotation: The shop drops its one-price rule. It adds a 2 percent surcharge to card sales only and goes back to $20.00 for cash. Card sales fall to 55 percent of all sales. The shop still pays the processor 2 percent of each card sale. Card C, "A card's rewards (made up)". Who made it: written for this sheet. Summary in our words, not a quotation: Card users get 1.5 percent of each purchase back. The reward is paid out of the fees shops pay.

11. 8.

    Luz compares cards A and B. What happened to the shop's average fee per dollar of sales, and who bears it now?

    • It stayed at 1.4 percent, since the shop still pays 2 percent on each card sale
    • It fell from 1.4 to 1.1 percent of sales, and card buyers now pay it; some moved to cash
    • It rose, since the shop now charges card buyers 2 percent on top of what it pays
    • It fell to 1.1 percent, and the shop still pays it, as a surcharge changes nothing for it
12. 9.

    A student claims cash buyers help pay card users' rewards. Milo tests the claim against cards A and C. What is the best verdict?

    • Wrong: cash buyers get a lower price than card users in year one, so cash buyers gain
    • Supported in both years, since rewards are always paid out of the fees that shops pay
    • Not shown: card C says rewards come from fees but not who pays those fees to shops
    • Supported in year one: fees sit in the one price cash buyers pay; only card users earn rewards
13. 10.

    In year two, Ren asks what a $20.00 item costs card buyers and cash buyers. Which statement fits card B?

    • Card buyers pay $20.02, since 2 percent is added as 2 cents to the posted price
    • Card buyers pay $20.40, the $20.00 plus 2 percent; cash buyers pay $20.00 as before
    • Each buyer pays $20.40, since a surcharge is added to the posted price of the item
    • Cash buyers pay $20.40, since cash is the costlier way for the shop to handle