Cash
What is the term for physical money in the form of bills and coins?
Cash
What does a debit card do when making a purchase?
Directly withdraws money from your checking account.
What does EFT stand for?
Electronic Funds Transfer
What does a credit card allow you to do?
Borrow money to make purchases, which must be repaid later.
Who dictates decisions about the money supply, and sets interest rates.
The Federal Reserve
What is the difference between a debit card and a credit card?
A debit card uses your own money, while a credit card borrows money from the bank.
What is one example of an EFT transaction?
Direct deposit, online bill pay, wire transfer, etc.
What is the minimum payment on a credit card?
The smallest amount you must pay each month to avoid penalties.
What is one major disadvantage of carrying large amounts of cash?
Inflation or it being lost or stolen
Why do some stores require a PIN for debit card transactions?
To prevent fraud and confirm the cardholder's identity.
What five things must be on a check for it to be valid?
Date, payee's name, amount in numbers, amount in words, and the payer's signature.
What does APR stand for, and why is it important?
Annual Percentage Rate; it represents the interest charged on unpaid credit card balances.
What feature helps prevent counterfeiting on U.S. bills?
Security threads, watermarks, color-shifting ink, etc.
What is "overdraft protection" on a debit card?
A service that allows transactions to go through even if there are insufficient funds, often with a fee.
What happens if you write a check but don’t have enough money in your account?
The check will bounce, and you may face overdraft fees.
What is a secured credit card?
A credit card that requires a deposit as collateral.
How does inflation affect the value of cash over time?
Inflation reduces the purchasing power of cash, meaning the same amount buys less over time.
Why might a business prefer debit over credit transactions?
Debit transactions usually have lower processing fees and reduce the risk of chargebacks.
What is ACH?
A system that moves money electronically, like for direct deposits and online bill payments.
How does a high credit utilization ratio affect your credit score?
A high credit utilization ratio can lower your credit score because it indicates over-reliance on credit.