241. What is the primary purpose of a bank account in personal finance?
A. Ignoring Changes in Equity
B. Provides a secure place to deposit, withdraw, and manage funds.
C. Detailing Long-Term Liabilities
D. Focusing Only on Short-Term Assets
242. How does a savings account differ from a checking account in terms of accessibility?
A. Assessing Market Trends
B. Savings accounts often have limitations on the number of withdrawals, while checking accounts offer more flexibility.
C. Ignoring Non-Cash Transactions
D. Setting Advertising Budgets
243. What is the role of interest in a bank account?
A. Focusing Only on Short-Term Liabilities
B. Represents the earnings or cost paid for the use of funds in a bank account.
C. Ignoring Changes in Cash Position
D. Analyzing Employee Performance
244. How does a joint bank account differ from an individual bank account?
A. Setting Advertising Budgets
B. Joint accounts involve multiple account holders who share equal access and responsibility.
C. Ignoring Non-Cash Transactions
D. Detailing Changes in Equity
245. What is the significance of the minimum balance requirement in a bank account?
A. Assessing Market Demand
B. Imposes a minimum amount that must be maintained to avoid fees or enjoy certain account benefits.
C. Focusing Only on Short-Term Assets
D. Ignoring Changes in Cash Position
246. How does overdraft protection work in the context of a bank account?
A. Analyzing Employee Performance
B. Prevents transactions that exceed the available balance by covering the shortfall, usually for a fee.
C. Setting Advertising Budgets
D. Ignoring Non-Monetary Transactions
247. What is the purpose of a Certificate of Deposit (CD) in a bank account?
A. Ignoring Changes in Equity
B. Represents a time deposit with a fixed term and interest rate, providing higher interest but limited liquidity.
C. Detailing Long-Term Liabilities
D. Focusing Only on Short-Term Assets
248. How does a money market account differ from a regular savings account?
A. Setting Advertising Budgets
B. Money market accounts typically offer higher interest rates and may have check-writing privileges.
C. Ignoring Changes in Cash Position
D. Assessing Market Trends
249. What role do automatic transfers play in managing a bank account?
A. Focusing Only on Short-Term Liabilities
B. Enables the automatic movement of funds between accounts or to pay bills on a scheduled basis.
C. Ignoring Non-Cash Transactions
D. Analyzing Employee Performance
250. How does the Federal Deposit Insurance Corporation (FDIC) protect funds in a bank account?
A. Assessing Market Demand
B. Insures deposits up to a certain limit per depositor, per bank, providing protection in case of bank failure.
C. Ignoring Changes in Equity
D. Setting Advertising Budgets
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