BTEC Business – Personal Finance Practice Exam 2026 - Free Personal Finance Practice Questions and Study Guide

The term used to describe a plastic card linked to your own bank balance is a debit card. A debit card allows you to access funds directly from your checking or savings account to make purchases or withdraw cash. When you use a debit card, the amount spent is deducted immediately from your bank balance, making it a convenient way to manage your finances while ensuring that you are spending within your available funds.

In contrast, a credit card allows borrowing against a credit limit and may incur interest if the balance is not paid in full by the due date, creating a different financial relationship. A gift card typically has a preloaded balance that can only be used until the funds are exhausted, but it is not linked to a personal bank account. A charge card, similar to a credit card, requires full payment of the balance each month and is often associated with specific stores or brands, not personal bank funds. Understanding the function of these different types of cards is crucial in managing personal finance effectively.