Unit 8 LT 2 Remediation

What is directly linked to a debit card?

• An investment portfolio

• A loan

• Your credit score

• Your bank account

What happens when you use a debit card to make a purchase?

• The money is borrowed

• The money is taken immediately from your checking account

• You pay interest

• You earn rewards

What is a primary advantage of using debit cards via ATMs?

• They charge annual fees

• They offer travel points

• They improve your credit score

• They provide quick access to your money with zero interest

What is a major risk associated with debit cards if they are stolen?

• Immediate replacement of funds

• High interest rates

• No access to ATMs

• It can take weeks to months to replace the money

What is a credit card considered as?

• A form of digital currency

• A direct link to your bank account

• A savings account

• A loan

What can most credit cards provide in addition to credit?

• Overdraft fees

• Zero interest rates

• Travel points and hotel discounts

• Immediate cash withdrawal

What does responsible use of a credit card help to build?

• Bank account balance

• Debt

• Interest rates

• Credit score

What type of fees are associated with credit cards?

• Transaction fees

• Late fees

• Overdraft fees

• ATM fees

What should you consider when applying for a credit card?

• The color of the card

• The size of the card

• Interest and annual fees

• The rewards offered

Why is it important to understand the difference between debit and credit cards?

• To avoid using them entirely.

• To make informed decisions about managing your money.

• Because only one can be used for online purchases.

• Debit cards are not widely accepted.