While demand deposits have about the same gross expenses per dollar of deposit as time deposits do,the _____________ levied against transaction account customers help to lower the net cost of checkable deposits.
A)higher account opening fees
B)higher service fees
C)higher pre-closure fees
D)lower interest rates
E)less number of services

Question

Quizplus · Accepted Answer

Demand deposit accounts typically have lower interest rates than time deposits, but they also generate revenue through service fees such as ATM fees, overdraft fees, and monthly maintenance fees. These fees help to offset the cost of providing checkable deposit services and can lower the net cost of maintaining demand deposit accounts relative to time deposits. Therefore, the higher service fees levied against transaction account customers can help to lower the net cost of checkable deposits.

While Demand Deposits Have About the Same Gross Expenses Per