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JA Debit and Credit Review

Total questions: 32

Worksheet time: 19mins

Name
Class
Date
1.

Which is an example of a financial institution?

a)

school

b)

bank

c)

school

d)

ATM

2.

Who uses financial institutions?

a)

anyone with a checking or savings account, loans, and/or debit and credit cards.

b)

College graduates

c)

Only people with a lot of money

3.

A debit card is a buy now pay now option.

a)

true

b)

false

4.

A bank is a for profit institution.

a)

true

b)

false

5.

One benefit of a credit card is to establish a credit history.

a)

true

b)

fales

6.

Credit cards are a buy now pay later option.

a)

true

b)

false

7.

Lenders lend money to borrowers. They charge an additional fee for the use of the money. This is called...

a)

fees

b)

interest

c)

credit

8.

The lower your credit score the lower your risk is to a lender.

a)

true

b)

false

9.

Internet banking means using a bank branch to make deposits.

a)

true

b)

false

10.

Identity theft is a threat to anyone with a good credit rating.

a)

yes

b)

no

11.

Credit cards charge interest

a)

yes

b)

no

12.

An advantage of using credit cards is that you have the flexibility to make purchases anytime and anywhere.

a)

true

b)

false

13.

Always report stolen credit cards and debit cards.

a)

yes

b)

no

14.

A disadvantage of a DEBIT CARD is that you can't spend anymore than you have in your account.

a)

true

b)

false

15.

A disadvantage of using DEBIT CARDS is that there are fees for ATM transactions not affiliated with your financial institution.

a)

true

b)

false

16.

Do you need to sign out of accounts when banking online?

a)

yes

b)

no

17.
What is the main difference between a bank and a credit union?
a)
banks don't do car loans
b)
credit unions don't have debit
c)
credit unions don't have loans
d)
banks are for profit, credit unions aren't
18.
If someone robbed the bank and took all the money, your money in that bank would still be safe. Why?
a)
rich bankers would pay you back
b)
banks are insured by the government
c)
you would hunt down the robbers
d)
Scooby Doo would find the robbers
19.
How much interest is charged on a debit purchase?
a)
none
b)
5%
c)
1%
d)
10%
20.
One advantage of credit cards over debit cards is that credit cards _______________
a)
are Visa and debits aren't
b)
can make you pay more for something
c)
charge interest
d)
help build a credit score
21.
Your chances of getting a loan depend on what?
a)
credit score
b)
nice banker
c)
your family
d)
your grades
22.

What is a Debit card?

a)

A card that deducts/subtracts money from your personal banking account

b)

A web-only bank

c)

A fee received or paid for the use of money

d)

A card that contains money that is borrowed from the bank

23.

What is a credit score?

a)

Borrowed money from your financial institution

b)

A standardized measurement of the potential to repay a debt

c)

A fee received or paid for the use of money

24.

What is debt?

a)

Money that you need

b)

Money that belongs to the bank

c)

Money that is being saved

d)

Money that you owe

25.

A debit card is handy in an emergency.

a)

true

b)

false

26.

A credit card is handy in emergencies.

a)

true

b)

false

27.

Creating a secure password when banking online is a safety tip.

a)

true

b)

false

28.

Credit cards allow you to make purchases for items you didn't save for or do not have money to purchase.

a)

true

b)

false

29.

Choose all that apply. Credit agencies help lenders determine which of the following:

a)

credit score

b)

credit history

c)

outstanding debt or defaults

d)

your wants and needs

30.

You can improve your credit score.

a)

yes

b)

no

31.

A credit card provides pre-approved credit.

a)

true

b)

false

32.

Which are ADVANTAGES of credit cards? Choose 2 answers.

a)

high interest rates

b)

buy now, pay later option

c)

best way to purchase something online

d)

terms and fees