Debit Cards Vs Credit Cards.
This quiz titled 'Debit Cards vs Credit Cards' explores key differences between debit and credit card usage, focusing on implications for personal finance. It assesses understanding of payment options, impacts on bank accounts and credit scores, providing valuable insights for financial literacy.
- 1.
Mr. Anderson wants to buy a new living room set, but he does not have enough money in his bank account to pay for one. Which of these is NOT an option for Mr. Anderson
- A.
He can use his credit card to buy the living room set now.
- B.
He can save money and pay cash for the living room set at a later date.
- C.
He can use his debit card to buy the living room set now.
- D.
He can save money and use his debit card to buy the living room set at a later date.
Correct Answer
C. He can use his debit card to buy the living room set now.Explanation
The question is asking which can Mr. Anderson NOT do. When you use your debit card that comes out of your bank immediately and being he does not have the money for the living room set now then he is unable to use his debit card.Rate this question:
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- 2.
When I use my credit card the amount used come directly out of my bank account.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Credit cards can be used now and paid later, they do not come directly out of your bank account.Rate this question:
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- 3.
Which statement best describes purchases made with a credit card?
- A.
Purchases made with this card are subject to no interest charges.
- B.
Purchases made with this card can be paid over time.
- C.
Purchases made with this card are withdrawn directly from your bank account.
- D.
This card is issued by your financial bank.
Correct Answer
B. Purchases made with this card can be paid over time.Explanation
Credit cards can paid over time with monthly payments.Rate this question:
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- 4.
Debit cards can affect your credit score? True or False
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Debit cards do not appear on your credit history or affect your credit score.Rate this question:
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- 5.
Which statement is truce about debit cards.
- A.
May cause unnecessary debt.
- B.
May have an annual fee.
- C.
Does not affect your credit score.
- D.
Pay interest on all purchases made.
Correct Answer
C. Does not affect your credit score.Explanation
Debit cards will not affect your credit history.Rate this question:
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Current Version
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Jan 18, 2023Quiz Edited by
ProProfs Editorial Team -
Jun 12, 2018Quiz Created by
Gretchen Anderson
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