Let's go through the facts one by one to determine if they apply to debit cards, credit cards, or both.
### Fact 1: Money is borrowed and paid back at a later date
Credit Card: This fact applies to credit cards. When you make a purchase with a credit card, you're borrowing money from the credit card company. You then pay back this borrowed amount at a later date, usually within a billing cycle of around 30 days.
Debit Card: This fact does not apply to debit cards. When you use a debit card, the money is automatically deducted from your checking account at the time of the transaction, so there's no borrowing involved.
Both: This fact does not apply to both.
So, the appropriate marking should be under "Credit Card".
### Fact 2: Money is automatically deducted out of a checking account
Credit Card: This does not apply to credit cards. As mentioned earlier, credit card transactions involve borrowing money, which is then paid back later.
Debit Card: This fact applies to debit cards. When using a debit card, the amount of the purchase is immediately deducted from your checking account.
Both: This fact does not apply to both.
So, the appropriate marking should be under "Debit Card".
### Fact 3: Recommended for emergency funds
Credit Card: This applies to credit cards. Credit cards are often recommended for emergencies because they allow you to make necessary purchases even if you don't have cash available at that moment.
Debit Card: This can also apply to debit cards, as they provide immediate access to your checking account funds. However, it is generally more common to refer to credit cards for emergencies due to the borrowing capacity they offer.
Both: This fact can apply to both. Both debit cards and credit cards can be used in emergency situations.
So, the appropriate marking should be under "Both".
### Summary in Table Form
\begin{tabular}{l|l|l|l}
\hline
\multicolumn{1}{c|}{ Fact } & Debit Card & Credit Card & Both \\
\hline
\begin{tabular}{l}
Money is borrowed and \\
paid back at a later date
\end{tabular} & & ✓ & \\
\hline
\begin{tabular}{l}
Money is automatically \\
deducted out of a checking \\
account
\end{tabular} & ✓ & & \\
\hline
\begin{tabular}{l}
Recommended for \\
emergency funds
\end{tabular} & & & ✓ \\
\hline
\end{tabular}
I hope this clears up any confusion about the differences and similarities between credit and debit cards!
