Checking Accounts. Why do individuals use checking accounts? What is the disadvantage of having funds in a checking account? Explain overdraft protection and stop payment orders. Are all bank fee structures the same?

Checking accounts: $($Select the best answer below.$)$

A$.$ no longer offer a record of payment, but they often pay interest.

B$.$ are used by people with insufficient funds in savings accounts.

C$.$ have varying fees and often pay substantial interest.

D$.$ enable people to have a record of payment, but they often pay no interest.

Overdraft protection is: $($Select the best answer below.$)$

A$.$ a loan, usually at high interest rates, that a bank gives certain customers when they don't have sufficient funds in their accounts to cover checks they have written.

B$.$ required by law.

C$.$ a service, usually at no charge, that a bank gives certain customers when they don't have sufficient funds in their accounts to cover checks they have written.

D$.$ a loan, usually at no charge, that a bank gives certain customers when they don't have sufficient funds in their accounts to cover checks they have written.

Stop payment orders are: $($Select the best answer below.$)$

A$.$ orders by the bank telling the depositor not to honor a particular check.

B$.$ orders by the depositor telling the bank not to honor all checks written on a particular day.

C$.$ orders by the bank telling the depositor not to honor all checks written on a particular day.

D$.$ orders by the depositor telling the bank not to honor a particular check.

Bank fee structures: $($Select the best answer below.$)$

A$.$ vary among financial institutions and should be compared before accounts are opened.

B$.$ vary among financial institutions, but should not be compared.

C$.$ vary among financial institutions and should be compared after accounts are opened.

D$.$ are the same at all financial institutions and therefore do not need to be compared.