Question

1 point 5. Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account? O Pays with a prepaid card she loaded earlier in the month O Uses her credit card and says, "Credit" when the cashier asks, "Credit or debit?" O Uses her debit card and says, "Credit" when the cashier asks, 'Credit or debit?" Pays with cash she had in her purse

Answer 1

Checking account is a deposit account held in a bank. It allows the depoits and withdrawal via automated teller machines, debit cards, electronic transactions etc.

Prepaid card is already loaded with money, so the checking account balance had already reduced earlier in the month, when card was loaded.

Paying with cash already in purse does not affect checking account balance because it is not withdrawn from checking account to make payment.

Using credit feature of credit card to make payment does not affect checking account balance because purchase is made on credit i.e. lipsticks could be purchased even if she had no balance in her account provided she had appropriate credit limit for shopping.

Using debit card to make payment will affect checking account balance because whether she used her debit card as credit or debit, the funds will still be withdrawn from her checking account as if there’s no money in her bank account, her debit card may get declined when she attempts make payment.

Hence, answer is use of debit card will reduce the amount of money in her checking account