Preston never opened his bank statements, so he was surprised to see that he had incurred a service charge, because his balance went below a required minimum balance. In addition, he did not earn interest for this month. What kind of account does Preston have?

Question

Quizplus · Accepted Answer

Preston's account is a checking account because it incurred a service charge and did not earn interest, which are typical for checking accounts. The fact that it has a required minimum balance suggests that it is an interest-earning checking account. The other answer choices are incorrect because they do not fit the description of Preston's account as having both service charges and minimum balance requirements.

Preston Never Opened His Bank Statements, So He Was Surprised