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QuizMultiple Choice

Understanding Checking and Debit Accounts — Quiz

Question 1 • Personal Finance

Natasha has $⁢1000 to open a checking account. She can maintain a monthly balance of $⁢600. She also has a savings account at the same bank. Her employer offers direct deposit and she plans to use online bill paying. She writes about eight checks per month. She currently uses the ATM machines at several different banks. Natasha sometimes overdraws her account. Bank Account Terms and Conditions Account A Account B Account C Account D Minimum Balance 500 dollars 250 dollars 100 dollars 1000 dollars Interest 0 point 2 percent 0 percent 0 percent 0 point 2 percent Overdraw Fees 0 dollars if linked with savings account or 40 dollars per overdraw 35 dollars per overdraw 25 dollars per overdraw 40 dollars per overdraft ATM Usage/Fees 0 dollars for all ATMs 0 dollars for ABC bank ATMs / 3 dollars for non-ABC bank ATMs 3 dollars per transaction 2 point 5 0 dollars per transaction Monthly Fee 10 dollars or 0 dollars with direct deposit 0 dollars 0 dollars 7 dollars or 0 dollars with linked savings Online Bill Payment free free free free Minimum Deposit to open 100 dollars 100 dollars 50 dollars 500 dollars Check Writing Limits unlimited 12 per month 10 per month unlimited Natasha wants an account with the lowest fees. Which checking account would be best for Natasha?

Answer
A
Account D
B
Account B
C
Account A
D
Account C

Explanation

Account A fits Natasha’s needs while avoiding the fees that matter most. Her $600 balance is above its $500 minimum, direct deposit waives its $10 monthly fee, and linking her savings account can eliminate its overdraft fee. It also allows free ATM use at all banks and unlimited check writing; Account A is choice C.

AI-written and checked against the verified answer.

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