Credit Cards vs. Debit Cards: Quiz 1

When you use a debit card, where does the money come from to pay for the purchase?

• A loan from the bank

• Your checking account

• Your parents' account

• The store's account

True or False: If you don't pay your credit card bill on time, you will have to pay extra money called interest.

• TRUE

• FALSE

A credit card is:

• A card that takes money directly from your bank account.

• A card that lets you borrow money from the bank to buy things.

• A card that only works at certain stores.

• A card that holds cash inside it.

How often do you typically need to pay your credit card bill?

• Every day

• Once a month

• Once a year

• When the card stops working

Which of the following is a benefit to using a credit card?

• You can never spend too much money.

• The money comes out of your account right away.

• You can earn points and rewards on your purchase.

• You never have to pay the money back.

True or False: If you use a debit card, you can only spend money that you actually have in your bank account.

• TRUE

• FALSE

In which of the following situations should you use a debit card, rather than a credit card? 

• Buying something online from a website you don't trust.

• Buying lunch when you have enough money in your account.

• Buying a new sweatshirt for $75 but you only have $50 in your checking account.

• You want to pay for something at the end of the month.

Which card directly withdraws money from your bank account at the time of transaction?

• Credit card

• Debit card