Question

question 4 of 25
what is the difference between a smart card and a cash card?
a. smart cards carry no spending limits.
b. a smart card is more secure than a cash card.
c. a cash card is tied to a bank account.
d. cash cards contain an embedded microchip.

Explanation:

Smart cards have embedded microchips which enable encryption and authentication features, making them more secure. Cash cards (like basic prepaid cards without micro - chips) lack these advanced security measures.

• Option A: Smart cards can have spending limits set (e.g., in some corporate or prepaid smart - card applications).
• Option C: Cash cards are not tied to a bank account in the traditional sense (they are prepaid and not directly linked to a checking/savings account like a debit card).
• Option D: It is smart cards that contain an embedded microchip, not cash cards.

Answer:

B. A smart card is more secure than a cash card.