Brad Kellogg Maintains a Monthly Balance in His Chequing Account

question 31

Essay

Brad Kellogg maintains a monthly balance in his chequing account of approximately $150, writes about 25 cheques a month, and makes three deposits each month. How would Brad decide which of the following chequing accounts to use?
I. a regular chequing account with a monthly fee of $4.50 for an unlimited number of cheques and no monthly balance required; no interest earned
II. an interest-bearing chequing account paying 4 percent interest on balances over $300; monthly service charge of $6 when the balance is below $300
III. a special chequing account that charges 35 cents a cheque and 20 cents for each deposit; no interest earned
IV. a minimum-balance account that requires a $200 minimum balance to avoid the $10 monthly fee; interest earned when balance is above $400.

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Definitions:

Moral Development

Refers to the process by which individuals learn to distinguish right from wrong and to develop attitudes and behaviors that are socially acceptable.

Ethical Behavior

Conduct that is consistent with agreed principles of moral and ethical standards, often involving honesty, integrity, fairness, and respect for others.

Social Norms

Unwritten rules or expectations for behavior within a social group, which shape individuals' actions and interactions.

Morally Justifiable

Actions or decisions that can be defended as right or acceptable according to ethical principles.