Explain the difference(s) between a debit card and a credit card.
What will be an ideal response?
A debit card works the same way as a check, in that it provides the bank with instructions to transfer funds from the cardholder's account to the merchant's account. The debit card-holder must have adequate funds in his/her checking account to cover the purchase. A credit card is a promise by a bank to lend the cardholder money with which to make purchases. The store supplying the goods being purchased receives money, but the money that is used does not belong to the buyer, the credit card provides the cardholder with access to someone else's money.
You might also like to view...
All economic questions are about
A) how to make money. B) what to produce. C) how to cope with scarcity. D) how to satisfy all our wants.
Suppose the market for dollars is in equilibrium, then the expected future exchange rate rises. What effect does this change have on the current exchange rate?
A) It will rise. B) It will fall. C) It will remain unchanged. D) Because both the supply and demand curves shift, the effect on the exchange rate is unpredictable.
If the unemployment rate in the economy is steady at 4 percent per year, how does the short-run Phillips curve predict that the inflation rate will be changing, if at all? What will happen if the unemployment rate now rises to 7 percent per year?
Assume there are no changes to inflation expectations. Provide an appropriate graph to support your discussion.
Which of the following groups are a part of the board of governors of the Federal Reserve?
a. Federal Open Market Operations b. Commercial Banks Presidents Council c. Federal Advisory Committee d. Both A and C are parts of the board of governors of the Federal Reserve