Question

1. Debit cards and credit cards look the same. However, they work very differently. Which statement is true about debit cards?

A) money is directly withdrawn from bank account
B) interest is charged if balance is not paid each month
C) the balance related to this card is how much money you owe
D) you do not need enough money in your account to cover your purchase

2. Which situation ONLY describes the use of a credit card.
A) Ally loves her card because it is convenient to use.
B) Chelsea lost her card so she reported it lost immediately.
C) Henry likes his card because he doesn't have to carry cash.
D) Brandi uses her card when she has not saved enough for a purchase.

3. You're the banker at HappyBank.com. Identify the two borrowers you would LEAST likely offer a loan based on their credit scores.
A) F. Lutts and B. Parker
B) F. Lutts and K. Teller
C) A. Fulbright and K. Teller
D) A. Fulbright and B. Parker

NAME Credit Report Score
F. Lutts 815
A. Fulbright 686
K. Teller 774
B. Parker 588

4. On May 9, 2014 Jason made a deposit of $650.00. What is his balance after this transaction?
A) $540.28
B) $832.45
C) $1190.28
D) $1548.11

Answer 1

1) A
2)D
3)D
4) Dunno

Here's the reason why I chose the answers as well.
1) When you have a debit card you are spending your OWN money. Therefor it's taken from the money if you have in your bank account.
2)Credit Cards are usually used when you don't have the cash at hand but have to pay it back.
3)The lower the credit score the worst it is.