Debit/ Credit

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

Online banking is an electronic way to view account activity and pay bills via the internet and an institution's website.

• True

• False

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

• True

• False

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

• True

• False

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

• True

• False

A debit card is a buy-now, pay-later payment type with a grace period for payments.

• True

• False

Lenders use credit agencies to determine:

• An applicant's credit score

• An applicant's credit history

• Whether an applicant has any outstanding debt or defaults

• All of the above

Which is a disadvantage of a credit card?

• Credit cards are buy-now, pay later

• Credit cards provide preapproved credit

• Credit cards charge interest

• Credit cards are the best way to pay for something online, because you can dispute a the charge

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

• True

• False