Advantages of depositing funds into a typical bank account instead of directly buying corporate securities include all of the following except:

Question

Quizplus · Accepted Answer

The advantages of depositing funds into a typical bank account include monitoring done by the bank on your behalf, increased liquidity if funds are needed quickly, and less price risk when funds are needed. However, there is no advantage of increased transaction costs when depositing funds into a bank account compared to directly buying corporate securities. In fact, transaction costs may be lower when buying securities due to online trading platforms and discount brokers. Therefore, choice C is the correct answer.

Advantages of Depositing Funds into a Typical Bank Account Instead