When you use a debit card to purchase a pair of jeans,you are
A)creating a 30-day loan from your bank to the seller.
B)creating a 30-day loan from the seller to your bank.
C)giving your bank an instruction to transfer money directly from your bank account to the stores bank account.
D)creating an overnight repurchase agreement between your bank and the store.

Question

Quizplus · Accepted Answer

When you use a debit card, you are authorizing your bank to directly transfer the money from your account to the store's account. There is no loan involved, it is simply an electronic transfer of funds.

When You Use a Debit Card to Purchase a Pair