Debit and Credit

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

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

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