#1
Which of the following best describes a debit card?
A card linked directly to your bank account, deducting funds instantly for purchases
ExplanationDirectly linked to bank account for instant purchase deductions.
#2
What is the primary advantage of using a debit card over a credit card?
Avoid accruing debt by spending only what you have
ExplanationPrevents debt accumulation by spending available funds.
#3
What does 'contactless payment' mean in the context of debit cards?
Tapping your card on a reader without inserting or swiping
ExplanationTap card on reader without inserting or swiping.
#4
What should you do if you suspect your debit card has been lost or stolen?
Immediately notify your bank to freeze the card
ExplanationNotify bank to freeze card if lost or stolen.
#5
Why is it important to review your bank statements regularly when using a debit card?
To identify any unauthorized transactions
ExplanationIdentify unauthorized transactions.
#6
What is the purpose of a personal identification number (PIN) associated with a debit card?
To authorize transactions and ensure security
ExplanationAuthorizes transactions and ensures security.
#7
Which of the following statements about overdraft fees on debit cards is TRUE?
They occur when you spend more money than is available in your bank account
ExplanationIncurred by spending beyond available funds.
#8
What is the typical daily spending limit on most debit cards?
Varies depending on the bank and account type
ExplanationVaries based on bank and account type.
#9
What is the significance of the CVV (Card Verification Value) on a debit card?
It is used to authenticate online transactions
ExplanationAuthenticates online transactions.
#10
Which of the following actions can help you avoid unnecessary fees when using a debit card abroad?
Notify your bank of your travel plans in advance
ExplanationNotify bank before traveling to avoid fees.
#11
Which of the following statements regarding debit card rewards programs is TRUE?
Rewards are typically earned based on the amount spent
ExplanationRewards based on spending amount.
#12
What is the difference between a debit card and a prepaid card?
Debit cards deduct funds from a bank account, while prepaid cards require upfront loading
ExplanationDebit: deducts from bank; Prepaid: upfront loading.
#13
How can you protect your debit card from fraudulent transactions?
Regularly monitor your account activity
ExplanationPrevent fraud by monitoring account activity.
#14
What does 'merchant category code' (MCC) represent in the context of debit card transactions?
It identifies the type of business accepting the card payment
ExplanationIdentifies business type accepting card.
#15
In case of a disputed transaction on your debit card, what is the first step you should take?
Dispute the charge with your bank or card issuer
ExplanationDispute charge with bank or issuer.
#16
What is the 'zero liability policy' regarding debit card fraud?
It means you are not liable for fraudulent transactions under certain conditions
ExplanationNot liable for fraud under certain conditions.