The Fee a Bank Charges for Maintaining a Checking Account

question 7

Multiple Choice

The fee a bank charges for maintaining a checking account is referred to as a(n) :

• A) NSF charge
• B) service charge
• C) ATM charge
• D) returned check charge

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Definitions:

Federal Funds Market

A financial market that allows banks to borrow and lend excess reserves to one another, usually overnight, at an interest rate called the federal funds rate.

Short-Term Loans

Short-term loans are borrowing options designed to be repaid within a short period, typically less than a year, used by individuals or businesses for immediate financial needs.

Excess Reserves

The amount of reserves that a bank holds in excess of the minimum reserve requirements set by central banking authorities.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by a central banking authority.