Chapter 14.3, Problem 2R

To determine

To evaluate the characteristics of each type of card in the outer circles and the traits they share in the inner circle.

Explanation of Solution

  

When a client uses a debit card the money directly comes from his / her checking account. The charge will be transferred to a credit line by using a credit card, for which it would be billed at a later date. It will come with a credit line overdraft that is extended to a to cover over-expenses, the client's checking account. The charge will be transferred to a credit line by using a credit card, for which it would be billed at a later date.

A credit card is a thin flat plastic card issued by financial institutions that allows you to borrow money from an authorized limit to pay for purchases. Its information is also covered by the issuer of the card and cannot be shared with anyone in order to avoid fraud.

In some ways, both are identical. Both provide the ease of not having to pay with cash, which is crucial when making costly purchases or travelling. Both are supplied by a financial entity and need to maintain an expense record, pay attention to fees and keep your personal identification number confidential.

Economics Concept Introduction

Introduction: Although ease of access is one of online banking many advantages, it also makes banking extremely convenient. The need to wait at the bank in long lines is removed entirely. In addition, transactions and payments have become simpler with mobile banking services available for most banks.