Question

question 8 of 10
how is a debit card different from a credit card?
a. a debit card is usually issued by a financial institution.
b. a debit card provides a way for people to make large purchases.
c. spending can occur via a digital payment method.
d. spending on a debit card is limited to the funds available in an account.

Explanation:

• Option A is incorrect because both debit and credit cards are typically issued by financial institutions.
• Option B is incorrect because credit cards are more commonly used for large purchases as they offer a line of credit, while debit cards draw directly from available funds which may not be sufficient for large expenses.
• Option C is incorrect because both debit and credit cards can be used for digital payments.
• Option D is correct: Debit cards deduct funds directly from the user's linked bank account, so spending is restricted to the account's available balance. Credit cards allow users to borrow money up to a set credit limit, regardless of current account funds.

Answer:

D. Spending on a debit card is limited to the funds available in an account.