Interest-bearing checking accounts,on average,tend to generate lower net returns for banks than regular (non-interest-bearing)checking accounts.

Question

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Interest-bearing checking accounts generate interest for the account holder, which means banks have to pay out money to account holders. However, these accounts often require higher balances and may have fees attached, which can generate revenue for banks. Regular checking accounts typically do not generate interest for account holders, but may come with fees and lower balance requirements, thus generating revenue for banks. Overall, it depends on the specific terms and conditions of each account type and how they are marketed and managed by the bank.

Interest-Bearing Checking Accounts,on Average,tend to Generate Lower Net Returns for Banks