Question

Which are three statements about using a debit card? Select all that apply.

Safer than carrying cash

Keeps history of purchases

Improves credit scores

Cost of item may be higher

Answer 1

Three statements about using a debit card include it being safer than carrying cash, keeping a history of purchases, and not improving credit scores. The cost of an item is generally unaffected by the use of a debit card.

Step-by-step explanation:

The question pertains to the attributes of using a debit card. When using a debit card, there are several features to consider. First, it is generally safer than carrying cash because if it is lost or stolen, you can report it to your bank to limit your liability for unauthorized transactions. Second, using a debit card provides a keeps history of purchases since each transaction is recorded by your bank, making it easier to track your spending. However, contrary to some beliefs, using a debit card does not improve credit scores because debit card activity is not reported to credit bureaus. Lastly, the cost of an item may be higher is not typically related to the payment method, meaning prices are generally the same whether you pay with a debit card, credit card, or cash.