Question

Why is there more risk for a business when it accepts checks than debit cards?
(1 point)
Checks are paper and debit cards are plastic.
Debit cards are FDIC insured and checks are not.
There is a limit on the amount for checks, not debit cards.
A debit card is approved electronically while checks are not.
A)
Can consumers avoid paying interest on credit cards?
(1 point)
Yes, if they pay the balance off immediately.
No, using credit cards even once generates fees.
Yes, there are many cards that have no interest or fees.
No, credit cards should not be used because of the fees that result.

Answer 1

1) A debit card is approved electronically while checks are not.
Explanation: Debit transactions are authorized and funds verified at the time of sale; checks can bounce or be forged, creating more fraud/insufficient-funds risk for the business.

2) Yes, if they pay the balance off immediately.
Explanation: If you pay the full statement balance by the due date (or immediately), you avoid interest because of the card’s grace period.