Foundations of Money

What is the difference between a debit card and a credit card?

A debit card is linked to your checking account and a credit card is borrowed money.

A certificate of deposit is:

An account where you deposit your money for a specific period of time in exchange for a higher interest rate

A prepaid card is usually cheaper to use than a debit card.

False

If you have a debit card, you will never be charged an additional fee if you use an ATM from a bank that's not yours.

False

What is the difference between a retail bank and a credit union?

a. A retail bank is a for-profit institution and a credit union is a non-profit institution b. A retail bank often has branches outside of a local region and a credit union often has branches only in the local region c. Both A and B

In general, what are some of the features of alternative financial products?

a. Higher fees b. Higher interest rates c. No traditional bank account required d. All of the above

How does an online bank differ from a traditional bank with physical branches?

a. Online banks may offer lower fees and better interest rates

Which of the following is true about money wires?

a. You can send money to others b. You can send money quickly c. You are charged a fee d. A and C only e. All of the above