Banking Cards

Which card is typically issued by the bank to all customers when they open a checking account?

• Credit Card

• Debit Card

• Prepaid Card

• Gift Card

What is a characteristic of using a debit card?

• Funds are borrowed and paid back at a later time.

• Money is taken directly from the customer's checking account.

• A bill for all purchases is sent at the end of the month.

• Offers rewards for their use.

Which card often charges a percentage of the amount charged as a cover for all purchases?

• Debit Card

• Credit Card

• Prepaid Card

• Gift Card

What is a disadvantage of using a credit card if the balance is not paid in full each month?

• The funds are taken out immediately.

• You are protected by a security code.

• You may end up paying more for your purchases.

• Spending is limited by the amount of money in your account.

Which card is protected by a security code or Personal Identification Number (PIN)?

• Credit Card

• Debit Card

• Both a) and b)

• Neither a) nor b)

Which statement describes a credit card?

• This card allows you to spend more money than you have in your bank account at a given time.

• When using this card, money is taken immediately out of your bank account.

• This card allows you to purchase products online.

• With this card, you may end up paying more for a product than the list price.

Which statement describes a debit card?

• This card allows you to spend more money than you have in your bank account at a given time.

• When using this card, money is taken immediately out of your bank account.

• This card allows you to purchase products online.

• With this card, you may end up paying more for a product than the list price.

What is a major convenience of credit cards according to the text?

• They offer rewards and points for purchases.

• They allow customers to purchase products now and pay for them later.

• They have no interest rates.

• They can be used to withdraw cash for free.

What do credit card companies allow customers to do each month?

• Pay the full amount owed.

• Pay a minimum amount of the balance.

• Skip the payment without any consequences.

• Increase the credit limit automatically.

What is the risk associated with the convenience of credit cards?

• They can be easily lost or stolen.

• They can make credit cards risky due to the gradual payment over time.

• They require full payment at the end of each month.

• They offer too many benefits which can be confusing.