Multiple Choice
Which payment frequency is generally most effective for building up your savings over time?
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1. Introduction to Accounting
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1. Which of the following is a common way to avoid a monthly maintenance fee on a bank account?
A
Ignore all account notifications from your bank.
B
Withdraw all funds from your account each month.
C
Maintain the required minimum balance in your account.
D
Write more checks than your monthly limit.
Verified step by step guidance1
Understand the concept of a monthly maintenance fee: Banks often charge a monthly maintenance fee for certain types of accounts if specific conditions are not met, such as maintaining a minimum balance.
Identify the common ways to avoid the fee: Banks typically waive the fee if you meet certain criteria, such as maintaining a required minimum balance, setting up direct deposits, or using the account actively within specified limits.
Evaluate the options provided in the problem: Analyze each option to determine whether it aligns with the goal of avoiding the monthly maintenance fee.
Recognize the correct approach: Maintaining the required minimum balance in your account is a common and effective way to avoid the monthly maintenance fee, as it satisfies the bank's conditions for waiving the fee.
Avoid incorrect actions: Ignoring notifications, withdrawing all funds, or exceeding the monthly limit for checks are not effective strategies and may lead to additional fees or account issues.
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