Question

Freya wants to use her debit card to purchase a $135 tablet computer.

What must Freya consider before using her debit card? Check all that apply.
She must be sure there is at least $135 in her bank account for the purchase.
She must check the interest rate on the debit card.
She must check to see if any automatic payments are scheduled for her
account.
She must check her credit history.
She must make sure she will be able to make the monthly payments.

Answer 1

Select:
- She must be sure there is at least $135 in her bank account for the purchase. (Debit card purchases withdraw funds immediately.)
- She must check to see if any automatic payments are scheduled for her account. (Scheduled withdrawals could reduce available balance and cause overdrafts or fees.)

Do not select:
- She must check the interest rate on the debit card. (Debit cards don’t carry interest like credit cards; overdrafts/linked credit lines may have fees/interest.)
- She must check her credit history. (Not required for a debit transaction.)
- She must make sure she will be able to make the monthly payments. (Debit purchases are paid immediately, not in monthly installments.)