Debit and Credit Open Book Test

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

• A) True

• B) False

You order your favorite foot-long sandwich with chips and a drink using your debit card. The total comes to $5.68. Your online statement shows a charge of $40.68. The extra amount is an overdraft fee.

• A) True

• B) False

A credit card provides preapproved credit.

• A) True

• B) False

Internet banking means using a bank branch to make deposits and withdrawls.

• A) False

• B) True

The lower an applicant's credit score, the lower the risk to the lender.

• A) True

• B) False

Identity theft is a threat to anyone with a good credit rating.

• A) True

• B) False

An example of a financial institution is

• a) A department store

• b) A bank

• c) A school

• d) An ATM machine

Who uses financial institutions?

• a) Adults

• b) College gradutes

• c) Almost everyone who maintains a savings or checking account, uses debit or credit cards, or needs a loan

• d) Account holders with lots of cash

9) Identify the incorrect statement.

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

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

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

• d) A debit card is a pay-now payment type with no grace period for payments.

To keep your account safe, create a strong password when banking online. Name two additional safety tips when banking online.