Debit and Credit Assessment

An example of 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

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.

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

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

• Debit

• Stock

• Interest

• Credit

6.   Define online banking.

  To keep your account safe, create a strong password when banking online.

Name two additional safety tips when banking online.

 

List an advantage and disadvantage of a credit card.

Banks want college students to have their credit cards. Why do you think this is? Is it a good idea? Explain your answer.

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

 

• False
• True