Which term is the fee charged for ongoing account maintenance by a bank?

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Study for the 6th Grade Financial Literacy Test. Explore interactive quizzes and multiple-choice questions with insightful explanations. Prepare effectively today!

Multiple Choice

Which term is the fee charged for ongoing account maintenance by a bank?

Explanation:
The main idea here is understanding bank fees for keeping an account open. The fee charged for ongoing account maintenance is called a service charge. This is the cost a bank deducts for providing basic account management, statements, and access to services. Interest is the charge or earnings on money borrowed or saved, not a maintenance fee. Income is money you receive, not a fee you pay. Bank refers to the institution itself, not a fee. So the correct term is service charge.

The main idea here is understanding bank fees for keeping an account open. The fee charged for ongoing account maintenance is called a service charge. This is the cost a bank deducts for providing basic account management, statements, and access to services. Interest is the charge or earnings on money borrowed or saved, not a maintenance fee. Income is money you receive, not a fee you pay. Bank refers to the institution itself, not a fee. So the correct term is service charge.

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