Lorenzo Is Deciding Between Two Banks for His Chequing Account

question 26

Multiple Choice

Lorenzo is deciding between two banks for his chequing account.Thrift Bank requires a minimum deposit of $100,charges a monthly fee of eight dollars,plus $0.50 per cheque.Merchants Bank also requires a minimum deposit of $100,charges no monthly fee,but charges $1.00 per cheque.How many cheques would Lorenzo need to write each month to make Thrift Bank less expensive to use than Merchants Bank?

• A)16 cheques
• B)8 cheques
• C)24 cheques
• D)12 cheques

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Definitions:

Market Status

The current condition or position of a product, service, or company in the competitive marketplace.

Shareholders

Individuals or entities that own shares in a corporation, thus having a partial ownership interest in the company.

Investments

Assets or items acquired with the goal of generating income or appreciation in value over time.

Returns

A term used in finance to describe the profit or loss derived from investing or saving.