19 questions
When you use a debit card, money is pulled directly from of your checking account.
True
False
Cash is safer and more convenient than using a debit or credit card.
True
False
When you use credit for payment, you borrow money and pay back in smaller amounts over time.
True
False
You visit an ATM and withdraw $150 from your checking account. Is this an example of using debit or credit?
debit
credit
You visit a mechanic and discover your car needs new brake pads. You pay for the service with a card. The service then shows up on a monthly bill for the card. Is this an example of using debit or credit?
debit
credit
If you forget to pay your monthly credit card bill by its due date, the bank won't care and there will be no extra fees to pay.
True
False
One benefit to using credit is it allows you to purchase BIG items like a house or car. You can then make smaller monthly payments and pay it off over a longer period of time.
True
False
Your mom takes the family dog to the vet for shots and minor surgery. The cost of the vet visit shows up on a monthly bill and must be repaid in full by the end of the month to avoid paying interest. Did your mom pay using debit or credit?
debit
credit
Your older brother visits the bank to take out a loan to buy a new camper. Is this an example of using debit or credit?
debit
credit
One benefit to using credit is it can be used as a back-up payment option should your debit card get denied.
True
False
Your mom takes you shopping for snacks, hygiene essentials, and decorations for your dorm room. She pays for the purchase with a card, enters her PIN, and gets $20 in cash back from her checking account. Is this an example of using debit or credit?
debit
credit
Your dad's car is damaged while parked outside during a storm. He pays for the repairs with a card. The repairs then show up on the monthly bill for the card that he can pay back in smaller amounts over time. Did your dad pay with debit or credit?
debit
credit
If you don't have enough money in your checking account, your debit card will be denied when you try to purchase something.
True
False
You and your friends go to the movie theater. Before the movie starts, you buy popcorn, soda, and a bag of gummies. You pay for these items with a card that pulls directly from your checking account. Is this an example of using debit or credit?
debit
credit
One downside or negative to using credit as a payment option is that it leads to debt.
True
False
It's the holiday season, so you head out for a day of shopping to buy presents for your family. You pay for the presents with a card. At the end of your shopping trip, you check your online banking app to find that there is only $35.10 left in your checking account. Is this an example of using debit or credit?
debit
credit
Ms. Amanda splurged and bought a boat. Once she realized she could not make the minimum monthly payment for the boat, she decided to return the boat. Did Ms. Amanda use debit or credit to purchase the boat?
debit
credit
One benefit to using a credit card is you can earn gift cards, cash back, hotel discounts, and rewards just for using the card.
True
False
One downside or negative to using debit is that it is easy to overspend and rack up debt quickly if you're not careful.
True
False