Multiple Choice
What is the best reason for Jacinta to have a savings account in addition to a checking account?
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1. Introduction to Accounting
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Struggling with Financial Accounting?
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Which of the following is a primary benefit of using autodraft to pay your bills?
A
It eliminates the need to track your account balance.
B
It helps ensure bills are paid on time, reducing the risk of late fees.
C
It increases the interest rate on your bank account.
D
It allows you to pay bills with physical cash only.
Verified step by step guidance1
Understand the concept of autodraft: Autodraft is a feature that automatically deducts payments from your bank account to pay bills on their due dates.
Identify the primary benefit of autodraft: The main advantage is that it ensures bills are paid on time, reducing the risk of late fees or penalties.
Evaluate the incorrect options: Autodraft does not eliminate the need to track your account balance, increase the interest rate on your bank account, or allow you to pay bills with physical cash.
Focus on the correct option: The correct answer highlights the benefit of timely payments, which is crucial for maintaining good financial standing and avoiding additional costs.
Conclude the reasoning: Autodraft is a practical tool for financial management, especially for individuals who want to automate their bill payments and avoid late fees.
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