Money Matters Test: Credit & Debit

What is a debit card?

• A loan from a bank

• A card that lets you borrow money up to a certain limit

• An electronic check that takes money directly from your bank account

• A card you can only use for online purchases

What is the main difference between a debit and a credit card?

• A debit card is a loan, but a credit card is your own money.

• A debit card uses your money, while a credit card is a loan from the bank.

• A credit card is only for emergencies.

• You can use a debit card anywhere, but a credit card is only for specific stores.

If you don't pay off your credit card balance on time, what might you be charged?

• A fee

• Interest

• A penalty

• All of the above

Which of the following is a disadvantage of using a debit card?

• You can't spend more money than you have in your account.

• It doesn't help you build a credit history.

• It's easy to get into debt.

• There are often high interest rates.

What is a credit score?

• A grade you receive in a finance class

• A number that represents your savings account balance

• A three-digit number that tells lenders how likely you are to pay back money you borrow

• The total amount of money you owe

Which of the following is a benefit of having a good credit score?

• You can get a loan at a lower interest rate.

• You can spend as much money as you want.

• It guarantees you will get any loan you apply for.

• It means you don't have to pay your bills on time.

Which of the following is not one of the three major credit bureaus?

• Experian

• Equifax

• Bank of America

• TransUnion

What is the main reason why a lender would look at your credit score?

• To see how much money you have in the bank.

• To decide if they can trust you to pay back a loan.

• To find out what you are spending your money on.

• To see how many credit cards you have.

What can happen if you open several new credit accounts in a short amount of time?

• Your credit score will go up.

• It will not affect your credit score.

• Your credit score could go down.

• You will get a lot of rewards.

What does the term "credit mix" refer to?

• The different companies that have loaned you money.

• The combination of different types of credit accounts you use.

• Mixing up your credit and debit cards.

• The different types of rewards you get from credit cards.