Which of the Following Is True About Debit Cards

question 74

Multiple Choice

Which of the following is true about debit cards?

• A) They are a source of credit similar to credit cards.
• B) There is usually a 2-business-day float period when they are used.
• C) They generally carry a fixed credit limit similar to credit cards.
• D) They result in an immediate withdrawal from the user's checking account.

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Definitions:

Capital Assets (Net)

The total value of a business's long-term assets, including property, plant, and equipment, net of accumulated depreciation.

Functional Currency

The main currency used by a business entity to conduct its economic activities and financial reporting.

Acquisition Differential

The difference between the cost of an acquisition and the fair value of the net identifiable assets of the acquired entity.

Exchange Rates

The value of one currency for the purpose of conversion to another currency.