Question

The typical interest-checking account customer at your bank maintains a monthly balance of £1,150 net of float, writes 34 checks or withdrawals (21 electronic), deposits four transit checks, cashes two transit checks, makes two deposits (one electronic), and cashes one on- us check per month. Assume there is one account maintenance for an account in which checks are not returned and that net indirect expenses apply. Interest is paid on the account at an annual 1.5 percent rate.

Answer 1

A checking account is a type of bank account that allows customers to access their money easily for transactions. It typically does not earn much interest. On the other hand, a savings account pays interest but may require a trip to the bank or an ATM to withdraw money.

Step-by-step explanation:

A checking account is a type of bank account that allows customers to easily access their money for transactions through checks or debit cards. It typically does not earn much interest. On the other hand, a savings account pays a certain interest rate but may require a trip to the bank or an ATM to withdraw money. Some banks offer checking accounts that pay interest if a minimum balance is maintained. In this question, the student is provided with information about the typical activities and balances of customers with interest-checking accounts at a bank.