Concept explainers
Difference between debit and credit card.
Explanation of Solution
Using a debit card is just like using cash because, in order to use debit card, one must have balance in the account so that he/she can clear the transaction made with the debit card. Without having balance in the bank account, one cannot use the debit card. On the other hand, credit card is just like loan that does not require minimum balance in the account in order to use the card. But the holder of the credit card has to pay back the money borrowed with the credit card.
Introduction:
Debit card is a card that allow card holder to transfer money to other’s account or to pay for the purchase of goods and services. It also allows holder to transfer money available in the bank account.
Credit card is a card that allow card holder to transfer money or to pay for the purchase of goods and services. It also allows holder to transfer money above available balance in the account but only up to a certain limit.
Want to see more full solutions like this?
- Explain each of the following types of deposit accounts: a.demand deposit b.certificate of deposit c.money market demand accountarrow_forwarda. "Credit cards are considered money because they serve to purchase goods and services." Explain your answer?arrow_forwardAnswer in no more than 5 sentences. In your opinion, which is more convenient for you to use: cheques or actual currency? Why do you say so?arrow_forward
- For the following list of items, indicate if they are in M1, M2, or neither: a. Your $5,000 line of credit on your Bank of America card b. $50 dollars’ worth of traveler’s checks you have not used yet c. $1 in quarters in your pocket d. $1200 in your checking account e. $2000 you have in a money market accountarrow_forwardWhat are the different types of deposit accounts and loans offered to customers by any one commercial Bank in Oman? How will it benefit the account holders and borrowers?arrow_forwardHow does Bitcoin work? Is it legit? How do they invest in Bitcoin?arrow_forward
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub CoExploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage LearningEssentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning