Which of the following is a disadvantage of a checking account:
Group of answer choices
Overdraft protection
Direct payroll deposit
Account balance requirement
Online transaction options
Account balance requirement
The correct answer is "Account balance requirement."
To determine which of the following is a disadvantage of a checking account, let's break down each option and see how it may or may not be a disadvantage:
1. Overdraft protection: This feature allows the account holder to make transactions even if there are insufficient funds in the account, but it can lead to overdraft fees. While it may initially seem like a disadvantage, it actually provides a level of financial flexibility for the account holder.
2. Direct payroll deposit: This is a convenient feature that enables an individual's paycheck to be directly deposited into their checking account. It offers the benefit of quicker access to funds and eliminates the need to physically deposit a check. Therefore, direct payroll deposit is not a disadvantage.
3. Account balance requirement: Some checking accounts may have a minimum balance requirement, meaning the account holder must maintain a certain amount of money in the account to avoid fees. This can be viewed as a disadvantage as it restricts the account holder from fully utilizing their funds and may result in additional costs.
4. Online transaction options: Online transaction options allow account holders to conveniently manage their finances, transfer funds, pay bills, and perform other transactions through online banking. This is generally considered an advantage as it provides ease and accessibility to manage one's finances.
Based on the above analysis, the correct answer to the question is "Account balance requirement" as it can be seen as a disadvantage of a checking account.