6
QuizMultiple Choice

Understanding Checking and Debit Accounts — Quiz

Question 6 • Personal Finance

Wilbur has $⁢800 to open a checking account. He can maintain a minimum balance of at least $⁢500. He plans to use the ATM twice a month and he maintains a savings account at the same bank. His employer has direct deposit and he sometimes overdrafts his account. Bank Account Terms and Conditions A B C D Minimum Balance 500 dollars 250 dollars 300 dollars 100 dollars Interest 0 point 2 percent 0 percent 0 point 0 2 percent 0 percent Overdraft Fees 0 dollars if linked with savings account or 40 dollars per overdraft 35 dollars per overdraft 25 dollars per overdraft 25 dollars per overdraft ATM Usage/Fees 0 dollars for all ATMs 0 dollars for ABC bank ATMs 3 dollars for non-ABC bank ATMs 4 dollars per transaction 3 dollars per transaction Monthly Fee 10 dollars or 0 dollars with direct deposit 0 dollars 0 dollars 0 dollars Annual Fee 0 dollars 10 dollars 0 dollars 12 dollars Wilbur wants a checking account with the lowest fees. Which checking account would be best for Wilbur?

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

Explanation

Account A is best because Wilbur meets its $500 minimum balance, and his direct deposit waives its $10 monthly fee. Its ATM use is free, and linking his savings account can eliminate overdraft fees. The other accounts charge ATM, overdraft, or annual fees, so Account A has the lowest fees for Wilbur.

AI-written and checked against the verified answer.

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