Question

You are trying to decide which bank to start an account at. You pull up a website that compares two of the most popular banks in your area. The chart on the site looks like this.
Institution
Bank A
Bank B
Account Maintenance Fee
$5.00 per month
None
Minimum Monthly Deposit
$100 per month
$500 per month
Overdraft
$45
$30
Which of the following statements is true when se two banks?
Statement 1: Bank A has lower fees and lower minimum monthly deposit.
Statement 2: bank A has higher fees but a lower minimum monthly deposit.
Statement 3: Bank B has lower fees and a lower minimum monthly deposit.
Statement 4: Bank B has higher fees and a higher minimum monthly deposit.
Statement __ is true

Answer 1

Let's evaluate the statements based on the provided comparison of Bank A and Bank B:

- **Account Maintenance Fee**:
- Bank A: $5.00 per month
- Bank B: None

- **Minimum Monthly Deposit**:
- Bank A: $100 per month
- Bank B: $500 per month

- **Overdraft**:
- Bank A: $45
- Bank B: $30

Now, let's analyze each statement:

1. **Statement 1**: Bank A has lower fees and lower minimum monthly deposit.
- This is **false**. Bank A has an account maintenance fee, whereas Bank B has none.

2. **Statement 2**: Bank A has higher fees but a lower minimum monthly deposit.
- This is **true**. Bank A has a $5.00 maintenance fee (higher than Bank B’s fee of $0) but a lower minimum deposit requirement of $100 compared to Bank B’s $500.

3. **Statement 3**: Bank B has lower fees and a lower minimum monthly deposit.
- This is **false**. Bank B has no maintenance fee (lower than Bank A), but its minimum deposit is higher ($500).

4. **Statement 4**: Bank B has higher fees and a higher minimum monthly deposit.
- This is **false**. While Bank B does have a higher minimum deposit requirement, it does not have higher fees since it has no maintenance fee compared to Bank A.

Based on this evaluation, the correct statement is:

**Statement 2 is true**.