Difference between debit and credit card.

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Answer 1

Question

Chapter 14, Problem 1.1P

To determine

Difference between debit and credit card.

Expert Solution & Answer

Explanation of Solution

Using a debit card is just like using cash because, in order to use debit card, one must have balance in the account so that he/she can clear the transaction made with the debit card. Without having balance in the bank account, one cannot use the debit card. On the other hand, credit card is just like loan that does not require minimum balance in the account in order to use the card. But the holder of the credit card has to pay back the money borrowed with the credit card.

Economics Concept Introduction

Introduction:

Debit card is a card that allow card holder to transfer money to other’s account or to pay for the purchase of goods and services. It also allows holder to transfer money available in the bank account.

Credit card is a card that allow card holder to transfer money or to pay for the purchase of goods and services. It also allows holder to transfer money above available balance in the account but only up to a certain limit.

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Students have asked these similar questions

Short Description Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 800 billion dollars with an increment of 40 billion dollars, and the y-axis is scaled from 30 to 150 units with an increment of 5 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (160, 70)Point 2 at (720, 140)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (80, 110)Point 2 at (640, 40)A vertical Long-run Aggregate Supply, LRAS with two endpoints:Point 1 at (400, 145)Point 2 at (400, 30)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (720, 60)Point 2 at (160, 130)Two Reference Points:Lines AS, AD, and LRAS intersect at (400, 100)Lines AS and AD1 intersect at (280, 85) a. How much does aggregate demand need to change to restore the…

Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 1000 billion dollars with an increment of 50 billion dollars, and the y-axis is scaled from 0 to 180 units with an increment of 10 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (200, 40)Point 2 at (800, 160)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (200, 160)Point 2 at (800, 40)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (350, 170)Point 2 at (900, 60)A vertical Long-run Aggregate Supply, LRAS line with two endpoints:Point 1 at (500, 170)Point 2 at (500, 0)Two Reference Points:Lines AS and AD1 intersect at (600, 120)Lines AS, AD, and LRAS intersect at (500, 100) a. How much does aggregate demand need to change to restore the…

a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? $ billion b. If the MPC is 0.6, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? $ billion Suppose instead that the MPC is 0.95. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and government purchases need to change by $ billion.

Answer 2

Question

Chapter 14, Problem 1.1P

To determine

Difference between debit and credit card.

Expert Solution & Answer

Explanation of Solution

Using a debit card is just like using cash because, in order to use debit card, one must have balance in the account so that he/she can clear the transaction made with the debit card. Without having balance in the bank account, one cannot use the debit card. On the other hand, credit card is just like loan that does not require minimum balance in the account in order to use the card. But the holder of the credit card has to pay back the money borrowed with the credit card.

Economics Concept Introduction

Introduction:

Debit card is a card that allow card holder to transfer money to other’s account or to pay for the purchase of goods and services. It also allows holder to transfer money available in the bank account.

Credit card is a card that allow card holder to transfer money or to pay for the purchase of goods and services. It also allows holder to transfer money above available balance in the account but only up to a certain limit.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 14, Problem 1.1P

To determine

Difference between debit and credit card.

Expert Solution & Answer

Explanation of Solution

Using a debit card is just like using cash because, in order to use debit card, one must have balance in the account so that he/she can clear the transaction made with the debit card. Without having balance in the bank account, one cannot use the debit card. On the other hand, credit card is just like loan that does not require minimum balance in the account in order to use the card. But the holder of the credit card has to pay back the money borrowed with the credit card.

Economics Concept Introduction

Introduction:

Debit card is a card that allow card holder to transfer money to other’s account or to pay for the purchase of goods and services. It also allows holder to transfer money available in the bank account.

Credit card is a card that allow card holder to transfer money or to pay for the purchase of goods and services. It also allows holder to transfer money above available balance in the account but only up to a certain limit.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 14, Problem 1.1P

To determine

Difference between debit and credit card.

Expert Solution & Answer

Explanation of Solution

Using a debit card is just like using cash because, in order to use debit card, one must have balance in the account so that he/she can clear the transaction made with the debit card. Without having balance in the bank account, one cannot use the debit card. On the other hand, credit card is just like loan that does not require minimum balance in the account in order to use the card. But the holder of the credit card has to pay back the money borrowed with the credit card.

Economics Concept Introduction

Introduction:

Debit card is a card that allow card holder to transfer money to other’s account or to pay for the purchase of goods and services. It also allows holder to transfer money available in the bank account.

Credit card is a card that allow card holder to transfer money or to pay for the purchase of goods and services. It also allows holder to transfer money above available balance in the account but only up to a certain limit.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 14, Problem 1.1P

To determine

Difference between debit and credit card.

Expert Solution & Answer

Explanation of Solution

Using a debit card is just like using cash because, in order to use debit card, one must have balance in the account so that he/she can clear the transaction made with the debit card. Without having balance in the bank account, one cannot use the debit card. On the other hand, credit card is just like loan that does not require minimum balance in the account in order to use the card. But the holder of the credit card has to pay back the money borrowed with the credit card.

Economics Concept Introduction

Introduction:

Debit card is a card that allow card holder to transfer money to other’s account or to pay for the purchase of goods and services. It also allows holder to transfer money available in the bank account.

Credit card is a card that allow card holder to transfer money or to pay for the purchase of goods and services. It also allows holder to transfer money above available balance in the account but only up to a certain limit.

Answer 6

Chapter 14, Problem 1.1P

To determine

Difference between debit and credit card.

Expert Solution & Answer

Explanation of Solution

Using a debit card is just like using cash because, in order to use debit card, one must have balance in the account so that he/she can clear the transaction made with the debit card. Without having balance in the bank account, one cannot use the debit card. On the other hand, credit card is just like loan that does not require minimum balance in the account in order to use the card. But the holder of the credit card has to pay back the money borrowed with the credit card.

Economics Concept Introduction

Introduction:

Debit card is a card that allow card holder to transfer money to other’s account or to pay for the purchase of goods and services. It also allows holder to transfer money available in the bank account.

Credit card is a card that allow card holder to transfer money or to pay for the purchase of goods and services. It also allows holder to transfer money above available balance in the account but only up to a certain limit.

Answer 7

Chapter 14, Problem 1.1P

To determine

Difference between debit and credit card.

Answer 8

Expert Solution & Answer

Explanation of Solution

Using a debit card is just like using cash because, in order to use debit card, one must have balance in the account so that he/she can clear the transaction made with the debit card. Without having balance in the bank account, one cannot use the debit card. On the other hand, credit card is just like loan that does not require minimum balance in the account in order to use the card. But the holder of the credit card has to pay back the money borrowed with the credit card.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Introduction:

Debit card is a card that allow card holder to transfer money to other’s account or to pay for the purchase of goods and services. It also allows holder to transfer money available in the bank account.

Credit card is a card that allow card holder to transfer money or to pay for the purchase of goods and services. It also allows holder to transfer money above available balance in the account but only up to a certain limit.

Answer 12

Ch. 14 - Prob. 1.1P Ch. 14 - Prob. 1.2P Ch. 14 - Prob. 2.2P Ch. 14 - Prob. 2.3P Ch. 14 - Prob. 3.4P Ch. 14 - Prob. 3.5P Ch. 14 - Prob. 3.6P Ch. 14 - Prob. 3.7P Ch. 14 - Prob. 4.8P Ch. 14 - Prob. 4.9P

Difference between debit and credit card.

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Difference between debit and credit card.

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