2
AssignmentMultiple Choice

Understanding Checking and Debit Accounts

Question 2 • Personal Finance - EL3403

Which statement best describes differences between digital wallets and P2P payment systems?

Answer
A
P2P systems always involve a fee, while digital wallet transactions are free.
B
P2P transfers are irreversible, whereas digital wallet transactions can be canceled.
C
Digital wallets store multiple forms of payment, whereas P2P transfers using bank accounts.
D
Digital wallets require Internet connections, while P2P payments can be completely offline.

Explanation

A digital wallet can store several payment methods, such as debit or credit cards, and let you choose among them when paying. P2P payment systems are designed to send money between people and commonly link to bank accounts. The other statements are too absolute: fees and cancellation rules vary, and both types of services generally need an Internet connection.

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