Checking Account, Debit Cards, and Credit Cards

Avery is a waitress who does online banking. She rarely writes checks but uses a debit card at least twice a day. What type of features will she not need from a financial institution?

• Free debit card

• Free debit card usage

• Free checks

• Free online banking

Aliyana is a retired nurse. She does not use a debit card but writes many checks. She does online banking and transfers money from her savings account to her checking account twice a month. Aliyana's bank is one of the four financial institutions described. Which most likely is Aliyana's bank?

• Bank 1

• Bank 2

• Bank 3

• Bank 4

John is deciding whether to use a debit card or a credit card to purchase a $50 remote control helicopter. Which statement correctly explains which card John should use to make his purchase?

• He should use a credit card because it withdraws the money from his bank account automatically.

• He should use a credit card because it can withdraw money from a bank account as purchases are made.

• He should use a debit card because it is used like cash or checks.

• He should use a debit card because it is used like a personal short-term loan.

Which statement is true for a credit card but NOT true for a debit card?

• A cardholder must use a PIN when making purchases.

• A cardholder will have money withdrawn from an associated bank account when making purchases.

• A cardholder will be charged interest on a purchase unless the balance on the card is paid in full at the end of the billing period.

• A cardholder can use an ATM to withdraw money.

Which statement best describes purchases made with a debit card?

• Purchases made with this card are subject to interest.

• Purchases made with this card can be paid over time.

• Purchases made with this card are withdrawn from a bank account.

• Purchases made with this card are subject to a credit limit.