Which of the Following Is the Better Banking Option for Jane

question 16

Multiple Choice

Which of the following is the better banking option for Jane who keeps a minimum bank balance of $1000,needs liquidity and does ten transactions per month?

• A)Ace Bank pays no interest,has no ABM fees but charges a $7.00 monthly account fee.
• B)Bee Bank charges a $60 annual fee for the account,pays interest at two percent on the average monthly balance,and has $1.00 ABM fees.
• C)Sea Bank charges no fees as long as the account balance remains above $1000,pays two percent interest on the average monthly balance,charges $1.00 ABM fees,and requires no minimum balance.
• D)Dee Bank requires no minimum balance,pays one percent interest on the average monthly balance,and allows 10 free ABM withdrawals a month,but charges $3 per withdrawal thereafter.

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Definitions:

Financial Accounting

The field of accounting that provides economic and financial information for investors, creditors, and other external users.

Raw Materials

Basic materials that are used in the production of goods, which have not yet been processed or manufactured.

Direct Materials

Raw materials that are directly incorporated into a finished product and are a significant portion of the product’s cost.

Indirect Materials

Materials used in the production process that cannot be directly traced to the finished product in a cost-effective manner.