What is the primary difference between a credit card and a debit card?

Credit cards offer rewards points, while debit cards do not. Credit cards provide a line of credit, while debit cards deduct directly from bank accounts. Credit cards are accepted internationally, while debit cards are not. Credit cards have higher interest rates than debit cards.

What event in India led to a significant increase in credit card usage?

Implementation of the Goods and Services Tax (GST) Introduction of online payment platforms Demonetization Surge in private bank offerings

Which of the following is NOT a benefit of using a credit card?

Deferred payment option Building credit history Earning reward points and discounts Guaranteed lower interest rates than debit cards

How do credit cards help in tracking expenses?

By providing real-time notifications for every transaction By generating monthly statements detailing all purchases and payments By automatically categorizing expenses for budget analysis By linking directly to personal finance management apps

What is a potential drawback of using credit cards for large purchases?

High interest rates can accumulate if not paid off promptly Credit card limits may restrict the purchase amount Reward points are not applicable for large transactions EMI options are not available for all purchases

What security measure is commonly used by banks to protect credit card users from fraudulent activities?

Mandatory two-factor authentication for online transactions Regular credit score checks to detect suspicious activity Sending SMS or email alerts for every card swipe Providing insurance against card theft and damage

How can a good credit history benefit an individual?

It can lead to lower insurance premiums It can improve chances of securing loans from banks It can increase the credit card limit automatically It can provide access to exclusive investment opportunities

What is the interest-free period associated with credit cards?

The time between receiving the credit card and making the first purchase The duration for which no interest is charged on outstanding credit if paid by the due date The period after making a large purchase before EMI payments begin The time taken for reward points to accumulate and become usable

What makes credit cards a convenient option for international travel?

They offer better exchange rates than currency conversions They eliminate the need to carry large amounts of cash They provide free travel insurance for international trips They guarantee acceptance at all merchants worldwide