Which statement best describes a debit card?

Which statement best describes a debit card?

• A. Spends money from your own account.
• B. Borrows money to be paid back later.
• C. Is only used for online purchases.
• D. Gives you a loan from the bank.

Answer: (A)

Using a debit card means you’re spending money you already have in your bank account. When you use it, the funds are taken from your checking or savings right away, so you’re not borrowing. This is different from a loan or credit card, where the bank pays for the purchase and you pay it back later with possible interest. Debit cards work for in-person and online purchases, not just online. They don’t give you a loan; they simply access your own funds. Remember to keep an eye on your balance to avoid spending more than you have.

Using a debit card means you’re spending money you already have in your bank account. When you use it, the funds are taken from your checking or savings right away, so you’re not borrowing. This is different from a loan or credit card, where the bank pays for the purchase and you pay it back later with possible interest. Debit cards work for in-person and online purchases, not just online. They don’t give you a loan; they simply access your own funds. Remember to keep an eye on your balance to avoid spending more than you have.