Question

question 17 of 20
what is a disadvantage of using a checking account instead of other types of accounts?
a. you will generally not receive interest.
b. you will likely not have federal protection for your money.
c. you will pay a penalty if you withdraw your money.
d. you will pay a fee if you make too many transactions.

Explanation:

Checking accounts are designed for frequent transactions, so they typically offer little to no interest, unlike savings or investment accounts. Option B is incorrect because checking accounts at insured institutions have federal protection (e.g., FDIC in the U.S.). Option C is false as checking accounts allow unrestricted withdrawals without penalties. Option D is not a universal disadvantage, as many checking accounts offer unlimited fee-free transactions.

Answer:

A. You will generally not receive interest.