Future Business Leaders of America (FBLA) Business Calculations Practice Test

A service charge is most commonly associated with which type of account?

1. Making a deposit

2. Making a withdrawal

3. A checking account

4. A savings account

The correct answer is: A checking account

A service charge is most commonly associated with a checking account because these accounts often have fees for maintaining the account, processing transactions, or providing additional services like overdraft protection or printed checks. Financial institutions typically impose these charges to cover administrative costs or to discourage low-balance accounts. In contrast, while savings accounts can also have fees, they are generally less common and often tied to specific conditions such as falling below a minimum balance. Making deposits or withdrawals does not inherently relate to service charges, as they are simply transactions that may or may not incur fees depending on the type of account and the bank's policies. Therefore, checking accounts are the most likely to have ongoing service charges associated with their management and maintenance.