Debit and Credit Assessment

Front

An example of financial institution is: A department store, A bank, A school, An ATM machine

Back

A bank

Front

Who uses financial institutions?

Back

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

Front

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.

Back

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

Front

Lenders use credit agencies to determine:

Back

An applicant's credit score, An applicant's credit history, Whether an applicant has any outstanding debt or defaults.

Front

When lenders lend money to borrowers, they charge an additional fee for the use of their money. This fee is called:

Back

Interest

Front

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

Back

False

Front

You order your favorite foot-long sandwich with chips and a drink using your debit card. The total comes to $5.68. Your online statement shows a charge of $40.68. The extra amount is an overdraft fee. True or False?

Back

True

Front

A Credit card provides preapproved credit.

Back

True

Front

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

Back

False

Front

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

Back

False