Understanding Debit Cards

What is a debit card directly linked to?

• A prepaid cash balance

• A cryptocurrency wallet

• A line of credit

• Your bank account

When you use a debit card, whose money are you spending?

• Your own money

• A friend's money

• A loan

• The bank's money

What happens if you use a debit card to buy a pair of shoes for $50 from a $500 balance?

• Your account balance becomes $450

• You borrow $50 from the bank

• You get a $50 credit on your next purchase

• You pay interest on the $50

Why might someone prefer using a debit card over cash?

• It builds credit history

• It's safer and more convenient

• It offers unlimited funds

• It earns interest over time

What is a major drawback of using a debit card?

• It is not accepted internationally

• It offers too many rewards

• It doesn't help build credit history

• It has high annual fees

What should you do if your debit card is lost or stolen?

• Start using cash only

• Wait for it to expire

• Report it immediately

• Apply for a credit card instead

How can a debit card help manage your finances?

• By allowing unlimited spending

• By providing loans

• By controlling your spending to your account balance

• By investing your money in stocks

How does a debit card differ from a credit card?

• A debit card charges high interest rates

• A debit card uses your own money but a credit card uses a bank's money

• A debit card is not linked to a bank account

• A debit card allows you to borrow money

What is a wise practice for using a debit card?

• Keeping track of your spending

• Sharing your card information freely

• Using it to withdraw all your money at once

• Ignoring the bank's security alerts

What is a credit card?

• A card that allows you to pay the balance over a period of time, subject to interest

• A form of financial aid that does not have to be repaid

• A card that immediately deducts funds from your checking account

• The removal of money from a bank account