Debit Cards vs. Credit Cards Quiz

What is a debit card?

• A debit card is a payment card that deducts money directly from a consumer's checking account to pay for a purchase.

• A debit card is only accepted for online purchases

• A debit card is used to borrow money from the bank

• A debit card is a type of credit card

What is a credit card?

• A payment card issued to users for making purchases based on the cardholder's promise to pay the issuer.

• A type of grocery store loyalty card

• A form of public transportation pass

• A type of identification card

What are the pros of using a debit card?

• Limited acceptance

• Accumulating debt

• Avoiding debt, widely accepted, and helps track spending

• Encourages overspending

What are the cons of using a debit card?

• Debit cards offer better rewards than credit cards

• Risk of overspending, potential for fraud or theft, limited consumer protection compared to credit cards

• Debit cards have higher interest rates than credit cards

• No cons at all

What are the pros of using a credit card?

• Convenience, rewards, build credit history, purchase protection

• Limited acceptance at some retailers

• High interest rates

• Increased risk of debt

What are the cons of using a credit card?

• Low interest rates

• No risk of overspending

• Earning cashback rewards

• Accumulating debt, high interest rates, potential for overspending

How does a debit card help in managing expenses?

• By providing access to unlimited credit

• By allowing unlimited spending with no consequences

• By automatically transferring funds from savings to cover expenses

• By limiting spending to available funds in the bank account

How does a credit card help in building credit history?

• By making timely payments and keeping the balance low

• By applying for multiple credit cards and accumulating debt

• By ignoring the credit card and not using it at all

• By maxing out the credit card and not making any payments

What security features do credit cards have to protect against fraud?

• Magnetic strip, PIN number, and photo ID verification

• Biometric authentication, one-time passwords, and credit freeze

• RFID technology, signature verification, and credit limit decrease

• EMV chips, tokenization, and fraud monitoring

What security features do credit cards have to protect against unauthorized transactions?

• EMV chips, tokenization, and fraud monitoring

• Password protection

• Biometric authentication

• Magnetic strip technology