Final answer:
The Navy Federal Debit Card lets you perform purchases and ATM transactions by transferring money directly from your bank account. It can be used wherever major credit cards are accepted, but unlike credit cards, it doesn't represent borrowed money.
Step-by-step explanation:
The function of a Navy Federal Debit Card is to facilitate electronic money transfers when making purchases for goods or services, as well as for ATM transactions. A debit card is directly connected to your bank account, so when you use it, the money is immediately transferred from your account to the seller's account. This is in contrast to credit cards, which represent short-term loans from the credit card company to you, to be repaid later.
Debit cards like the Navy Federal Debit Card can be used at businesses that accept major credit cards, since they often feature Visa, Mastercard, or Discover Card logos. Unlike credit cards, using a debit card doesn't change the quantity of money in the economy because it's using the money you already have in your account, not creating new money.
'Plastic money' such as credit cards, debit cards, and smart cards provide different mechanisms for conducting transactions but they do not alter the total amount of money within the economy. Debit cards function as a direct mechanism for transferring your funds to pay for goods and services or to withdraw cash from ATMs.