Banking and Finance

What is the main difference between a debit card and a credit card?

• Debit card is linked to your credit score, while a credit card is not

• Debit card has a higher interest rate than a credit card

• Debit card offers cashback rewards, while a credit card does not

• Debit card is linked to your bank account and deducts money directly, while a credit card allows borrowing money up to a limit.

Explain the concept of a savings account.

• A savings account is a type of credit card with no interest

• A savings account is a type of insurance policy for emergencies

• A savings account is a type of investment where you can lose money

• A savings account is a type of bank account where you can deposit money and earn interest on the balance over time.

What is a mortgage?

• A mortgage is a type of insurance policy.

• A mortgage is a form of investment in the stock market.

• A mortgage is a loan to buy a home.

• A mortgage is a government grant for homebuyers.

Define foreign exchange rates.

• Foreign exchange rates are the value of goods imported from other countries.

• Foreign exchange rates are the value of one currency in terms of another currency.

• Foreign exchange rates are the interest rates on foreign bank accounts.

• Foreign exchange rates are the prices of foreign stocks on the stock market.

How does a debit card work?

• A debit card allows you to borrow money from the bank.

• A debit card is only accepted for in-person transactions.

• A debit card is used to earn reward points for online shopping.

• A debit card accesses funds in your bank account for purchases or withdrawals.

Describe the benefits of having a savings account.

• Losing money due to inflation

• The benefits of having a savings account include earning interest, keeping money safe, easy access to funds, and developing a saving habit.

• Difficulty in tracking savings

• Limited access to funds

What are the types of accounts offered by banks?

• Retirement accounts

• Savings accounts, checking accounts, money market accounts, certificate of deposit (CD) accounts

• Credit card accounts

• Investment accounts

How are foreign exchange rates determined?

• Determined by the president's decision

• Supply and demand in the foreign exchange market

• Randomly fluctuating throughout the day

• Based on the weather conditions in the country

What is the purpose of a credit card?

• To act as a form of identification

• To provide a convenient way to make purchases on credit.

• To provide a convenient way to make purchases with cash

• To be used as a transportation pass

How do banks charge commissions on transactions?

• Banks charge commissions on transactions based on a percentage of the transaction amount or a flat fee.

• Banks charge commissions on transactions based on the phase of the moon

• Banks charge commissions on transactions based on the weather conditions

• Banks charge commissions on transactions based on the customer's favorite color