US Banks Did Not Offer Interest on Checking Accounts Until

question 310

Multiple Choice

U.S. banks did not offer interest on checking accounts until the beginning of the 1980s. As a result, before the early 1980s:

• A) the opportunity costs of keeping funds in checking accounts was zero.
• B) the opportunity costs of keeping funds in checking accounts was lower.
• C) the opportunity costs of keeping funds in checking accounts was higher.
• D) people kept money under their mattress.

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Definitions:

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, particularly those with children.

Homeless People

Individuals who lack stable, permanent, and acceptable housing, often resulting in living in shelters, on the streets, or in places not meant for human habitation.

Cash Assistance

Financial aid given to individuals or families to help them meet basic needs, typically provided by government agencies.

Official Poverty Line

A government-determined income level below which an individual or family is considered to be living in poverty, affecting eligibility for certain public assistance programs.