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

What is a common drawback of maintaining a checking account?

1. Impossible to withdraw cash

2. Limited transaction capabilities

3. Potential service charges

4. You cannot earn interest

The correct answer is: Potential service charges

Maintaining a checking account often comes with potential service charges, which can be a significant drawback for account holders. Many financial institutions charge fees for various services associated with the checking account, such as monthly maintenance fees, overdraft fees, or charges for using ATMs outside of the bank's network. These charges can accumulate, leading to decreased overall savings and making it less financially advantageous to maintain a checking account. On the other hand, other options present scenarios that are less representative of standard checking account features. For instance, withdrawing cash is typically a fundamental function of a checking account, and transaction capabilities usually allow a variety of activities, such as writing checks, making withdrawals, or transferring funds. While it is true that some checking accounts do not earn interest, many modern checking accounts now offer interest-earning capabilities, which diminishes that as a drawback in the current banking landscape.