Debit & Credit Assessment

An example of a financial institution is:

• a department store

• a bank

• a school

• an ATM machine

Who uses financial institutions?

• Adults

• College graduates

• Almost everyone who maintains a savings or checking account, uses debit or credit cards, or needs a loan

• Account holders with lots of cash

Define online banking.

Identify the INCORRECT statement.

• A debit card allows for an immediate electronic transfer of money from a cardholder's savings or checking account.

• A debit card is essentially a paper check but doesn't require the processing time a check does.

• A debit card is handy in an emergency when you don't have the money to spend.

• A debit card is a pay-now payment type with no grace period for payments.

To keep your account safe, create a strong password when banking online. Name two additional safety tips when banking online.

True or False?

A bank is a not-for-profit financial institution.

• TRUE

• FALSE

True or False?

A credit card provides preapproved credit.

• TRUE

• FALSE

True or False?

Internet banking means using a bank branch to make deposits and withdrawals.

• TRUE

• FALSE

True or False?

The lower an applicant's credit score, the lower the risk to the lender.

• TRUE

• FALSE

True or False?

Identity theft is a threat to anyone with a good credit rating.

• TRUE

• FALSE