Which of the Following Statements About Debit Cards Is True

question 19

Multiple Choice

Which of the following statements about debit cards is true?

• A)A debit card uses the funds of the card holder to pay for the transaction.
• B)A debit card is similar to a credit card except that it has a lower credit limit.
• C)A debit card cannot be used for online transactions.
• D)A debit card is another name for a credit card.

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Definitions:

Net Operating Income

The total profit of a company after operating expenses but before deducting interest and taxes.

Residual Income

Income that continues to be generated after the initial effort has been expended, often used in the context of investments or intellectual property.

Minimum Required Rate of Return

The lowest acceptable return on an investment, determined by an investor's risk tolerance and other factors, used as a benchmark for evaluating potential investments.

Operating Assets

Cash, accounts receivable, inventory, plant and equipment, and all other assets held for operating purposes.