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  1. Xiomara uses reward points on her credit card to purchase a book she wants to

read online. That evening she meets up with a friend for dinner but discovers she left

her credit card at home. She agrees to pay her friend for her half of dinner later using

Venmo. Their waiter uses a point-of-service mobile device to charge Xiomara's

friend's credit card. On her way home, Xiomara buys a latte at a drive-through using

cash she got from an ATM the day before, and when she gets home, she pays her

friend with Venmo and then uses some airline miles to buy a plane ticket to see her

mother in Mexico next month. Which of these purchases involve digital payments?

Which involve using digital assets? Which involve cash or credit? Explain why each

person might have chosen the form of payment. (8 points)

Transactions

Digital payments Digital assets

Cash or credit

Book

Dinner

Paying her friend

back

Latte

Plane ticket

Verified Answer :

The purchase of the book online would involve a digital payment using credit card reward points.
The transaction for dinner would involve a digital payment using the restaurant's point-of-service mobile device.
Paying her friend back later using Venmo is also a digital payment.
The purchase of the latte at the drive-through using cash would be a cash payment.
The plane ticket purchased using airline miles would involve using a digital asset.

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