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A "Free" Chequing Account with a Minimum Balance of $500

question 75

True/False

A "free" chequing account with a minimum balance of $500 has an opportunity cost of lost interest.


Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically for the financing of accounts receivable and inventories.

Short-Term Financing

Funding obtained for a period of one year or less, used to cover immediate needs such as working capital requirements.

Minimum Denomination

The smallest unit of value in which a security or financial instrument can be issued or traded.

Net Worth

The difference between an individual or household’s assets and liabilities.

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