Many banks offer free checking accounts.What may be the opportunity costs associated with free checking?

Question

Quizplus · Accepted Answer

When banks offer free checking accounts, they may compensate for the cost by implementing low-interest rates on savings accounts or high minimum balance requirements. Additionally, free checking accounts may not include overdraft protection, which may result in fees or penalties for customers who overdraw their accounts. Therefore, both options A and C are correct, making D the best choice.

Many Banks Offer Free Checking Accounts