W29 MATH 6.14 Understanding Banking and Credit Basics

What is one key difference between a checking account and a debit card?

• A checking account is a type of loan, while a debit card is a type of credit.

• A checking account allows you to write checks, while a debit card allows you to make electronic payments.

• A checking account earns interest, while a debit card does not.

• A checking account is only available at online banks, while a debit card is available at all banks.

Which of the following is a feature of a debit card?

• It allows you to borrow money from the bank.

• It is linked directly to your checking account.

• It helps you build a credit history.

• It charges interest on unpaid balances.

Why is it important to establish a positive credit history?

• It allows you to open a savings account.

• It helps you qualify for loans with better interest rates.

• It ensures you never have to pay taxes.

• It guarantees you will never be in debt.

What information is typically included in a credit report?

• Your favorite hobbies and interests.

• Your employment history and salary.

• Your credit accounts and payment history.

• Your family tree and ancestry.

How long is information typically retained in a credit report?

• 1 year

• 3 years

• 7 years

• 10 years

Which of the following is a method to pay for college?

• Using a credit card

• Applying for scholarships

• Taking out a mortgage

• Buying a lottery ticket

What is a key difference between a debit card and a credit card?

• A debit card allows you to spend money you don't have.

• A credit card is linked directly to your checking account.

• A debit card uses your own money, while a credit card borrows money from the bank.

• A credit card does not require any payments.

Which of the following is NOT a benefit of having a positive credit history?

• Lower interest rates on loans

• Easier approval for rental applications

• Higher credit card limits

• Guaranteed job offers

Which of the following is NOT typically found in a credit report?

• Your credit score

• Your payment history

• Your medical history

• Your credit inquiries

Which of the following is a way to save for college?

• Investing in stocks

• Opening a 529 savings plan

• Buying a new car

• Taking out a payday loan