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:

Contemporary Family

Modern family structures and relationships, often characterized by variations from traditional nuclear families, reflecting current social norms and changes.

Socially Approved

Behaviors, practices, or norms that are accepted or endorsed by society or a particular social group.

Family Decline

A theory or observation that traditional family structures and roles are weakening or changing negatively over time.

Family Allowance

Government-provided benefits paid to parents or guardians to help with the costs of raising children.