ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Nothing.
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The price of the item that I purchase will double.
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The bank may decline the transaction.
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I’ll get a phone call from the bank asking me what to do.
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Detailed explanation-1: -You may trigger a fee if you overdraw your account using your debit card, just as you would if you “bounced” a check. Or, there could be a charge if you use your debit card as an ATM card at a machine that is not operated by your financial institution.
Detailed explanation-2: -A debit card lets you spend money from your checking account without writing a check. When you pay with a debit card, the money comes out of your checking account immediately. There is no bill to pay later.
Detailed explanation-3: -No Debt – With a credit card it’s easy to purchase anything you want, even if you don’t have the funds. With debit cards, the money comes directly from your bank account, so you avoid spending more money than you have.
Detailed explanation-4: -With a debit card, your bank account balance is affected from the moment the fraudulent transaction takes place. If the transactions are significant, you could experience a domino effect of financial headaches. Fraudulent charges can tie up funds so that legitimate charges are declined or cause overdrafts.
Detailed explanation-5: -Debit cards allow you to spend money by drawing on funds you have deposited at the bank. Credit cards allow you to borrow money from the card issuer up to a certain limit to purchase items or withdraw cash. You probably have at least one credit card and one debit card in your wallet.