In what way is a debit card similar to a check?

• A. Both immediately withdraw funds from the user's bank account to pay for purchases.
• B. Both are forms of credit extended by the bank.
• C. Both require monthly payments with interest.
• D. Both allow the user to borrow money from the bank.

Answer: (A)

Verified step by step guidance

1. Understand the concept of a debit card: A debit card is a payment card that deducts money directly from the user's checking account to pay for purchases.
2. Understand the concept of a check: A check is a written, dated, and signed instrument that directs a bank to pay a specific amount of money to the bearer or the person named on the check.
3. Compare the functionality of a debit card and a check: Both debit cards and checks withdraw funds directly from the user's bank account, meaning they are not forms of credit and do not involve borrowing money.
4. Clarify why the other options are incorrect: Debit cards and checks do not require monthly payments with interest, nor do they allow the user to borrow money from the bank. These features are associated with credit cards, not debit cards or checks.
5. Conclude the similarity: The correct similarity is that both debit cards and checks immediately withdraw funds from the user's bank account to pay for purchases.