Question

Which of the following statements comparing debit cards to credit cards is TRUE?

A Debit cards allow you to draw funds directly from your checking account.
B Debit cards typically offer greater fraud protection than credit cards.
C Debit cards never require a signature to finalize a purchase like credit cards.
D Debit cards charge higher interest rates on purchases than credit cards.

Answer 1

The correct answer is A. Debit cards withdraw money directly from your account.

Explanations:
B. Debit cards offer less fraud protection than a credit card; the money has already left your hands whereas with credit cards it doesn't until the end of the month.
C. Debit cards do in fact require signatures. Yeah.
D. Debit cards charge much lower rates (if any, depending on the bank) because you are paying up front versus waiting until the end of the month when you will likely be charged interest and/or fees.

Hope I helped!