Which of the following is TRUE of most traditional checking accounts?

QUESTION

Which of the following is TRUE of most traditional checking accounts?

A) They are a place to deposit money and then make purchases against those deposits.
B) They generally pay higher interest than savings accounts.
C) They usually charge fees for falling below a minimum balance.
D) They generally do not require a monthly service fee.
E) They generally do not carry fees for overdrawing the account.

ANSWER

Answer: A
Explanation: A) A traditional checking account allows you to deposit money in a bank account and then write checks on that account. It does not pay interest but generally does not set a minimum balance either.