3
QuizMultiple Choice

Investing and Financial Markets — Unit test

Question 3 • Personal Finance - EL3403

Which is the best question for Joe to ask himself when deciding whether to open a checking or savings account?

Answer
A
Is there an ATM near my home or work?
B
Does the bank offer free checking?
C
If I need a loan, will they give it to me?
D
Why am I opening a bank account?

Explanation

Joe should first consider why he wants an account. A checking account is generally useful for frequent payments and access to money, while a savings account is meant for setting money aside. Asking “Why am I opening a bank account?” helps him decide which type fits his needs; ATM access and free checking matter only after that choice.

AI-written and checked against the verified answer.

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