Question

1. what is the difference between a debit card and a credit card? *

a) a debit card is linked to your bank account, while a credit card allows you to borrow money.
b) a debit card is used for online purchases, while a credit card is used for in - sto purchases.
c) a debit card has a higher interest rate than a credit card.
d) a debit card requires a credit check, while a credit card does not.

1. insurance is meant to reduce the ______ of accidents and damage to your car, home, body.

financial risk
danger
time
safety

Explanation:

Question 11

• Option a: Debit cards draw from your bank account (funds you own), credit cards let you borrow (up to a limit) and pay later. This matches their core difference.
• Option b: Both debit and credit cards can be used for online and in - store purchases, so this is incorrect.
• Option c: Debit cards don't have interest rates (you spend your own money), credit cards do (on unpaid balances), so this is wrong.
• Option d: Credit cards require credit checks (to assess borrowing risk), debit cards don't (they use your existing bank funds), so this is reversed.

• Insurance's main role is to reduce the financial loss (financial risk) from accidents/damage. For example, car insurance pays for repairs, health insurance for medical bills.
• "Danger" is about the likelihood of harm, not what insurance addresses.
• "Time" isn't related to insurance's purpose here.
• "Safety" is about preventing harm, but insurance deals with financial consequences after harm occurs.

Answer:

a) A debit card is linked to your bank account, while a credit card allows you to borrow money.

Question 12