ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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credit card
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debit card
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Either A or B
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None of the above
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Detailed explanation-1: -A debit card works best as a tool to obtain cash, or for small purchases. While it ensures you don’t go into debt-you can only spend money you literally have-it doesn’t help to build up your credit history either, as credit cards do.
Detailed explanation-2: -Secured credit cards vs. But with prepaid debit cards, you’re using your own money to make purchases-not money borrowed from the issuer. You load money onto the card, then the issuer uses that money to pay for your purchases.
Detailed explanation-3: -A debit card is linked to your checking account. It allows you to access money directly from your account for transactions, and also works as an ATM card to directly withdraw cash. You typically can’t spend any more than the amount you have in your account or your transaction will get declined.
Detailed explanation-4: -Debit card users can only spend the money available in their bank account unless they have overdraft protection. A credit card is linked to a line of credit offered by the company that issues the card. Credit cards help build credit history while debit cards don’t.
Detailed explanation-5: -Visa Debit Card. MasterCard Debit Card. Maestro Debit Cards. EMV cards. Platinum Debit Card. 04-Mar-2023