Navigating Debit and Credit Cards

What is financial literacy primarily concerned with?

• Understanding and managing money

• Learning about world economies

• Studying historical financial data

• Gaining political knowledge

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

• Debit cards use your existing funds

• Debit cards allow you to borrow money

• Credit cards do not allow online purchases

• Credit cards are linked to your bank account

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

• To prepare for mathematics exams

• To invest in the stock market

• To understand global economics

• To manage personal finances better

Tags

CCSS.RI.1.5

CCSS.RI.2.5

CCSS.RI.3.5

CCSS.RI.4.5

CCSS.RI.5.5

What happens if you try to use a debit card without sufficient funds?

• The transaction is approved

• The bank loans you the money

• You receive an overdraft fee

• The transaction is declined

How is the interest on a credit card calculated if the balance isn't paid fully?

• Interest is not applied on credit cards

• On the remaining balance after payments

• From the minimum payment amount

• Based on total account balance

Tags

CCSS.7.RP.A.3

What is a credit limit?

• The fee charged for card maintenance

• The minimum amount you must spend

• The maximum balance allowed on the card

• The maximum amount you can withdraw

If Frankie Finance pays off her bike immediately using her credit card, what would be the interest?

• $70

• 16%

• $0

• $15

Tags

CCSS.7.RP.A.3

What would Frankie's new bank balance be if she used her debit card to buy the bike?

• $220

• $350

• $150

• $500

Tags

CCSS.7.EE.B.3

Which card should be used if you want to avoid paying interest?

• Credit card with full payment

• Credit card with minimum payment

• Any credit card

• Debit card

What is the consequence of only making minimum payments on a credit card?

• Faster repayment of the loan

• Higher total payment due to interest

• Lower interest rates

• Immediate full repayment of the loan