What small plastic card is pre-loaded with money and is not linked to an account, and it does not give the holder money to borrow?

• A. Credit card
• B. Debit card
• C. Gift card
• D. Prepaid card

Answer: (D)

Prepaid cards are designed specifically for spending funds you load onto the card in advance, and they aren’t connected to a bank or credit account. Because the money is prepaid, you can only spend what’s on the card, and you’re not borrowing any money or paying interest. This matches the description of a small plastic card that's pre-loaded with money and not linked to an account, with no borrowing involved.

This differs from debit cards, which draw directly from a linked bank account, and from credit cards, which allow you to borrow money up to a limit and repay later. Gift cards are also prepaid, but prepaid cards cover the broader, standard concept of funds loaded in advance and used for purchases without tying to an account.