Which option best describes a bank deposit that allows withdrawals by writing checks?

Which option best describes a bank deposit that allows withdrawals by writing checks?

• A. Income
• B. Checking Account
• C. Income Tax
• D. Primary Market

Answer: (B)

Bank deposits intended for everyday access are described by a checking account because you can withdraw funds by writing checks. A checking account is designed for frequent transactions, offering high liquidity and the ability to pay or transfer money with checks. In contrast, income is money you earn, income tax is a levy on earnings, and the primary market relates to the issuance of new securities, not a deposit product used for check withdrawals.

Bank deposits intended for everyday access are described by a checking account because you can withdraw funds by writing checks. A checking account is designed for frequent transactions, offering high liquidity and the ability to pay or transfer money with checks. In contrast, income is money you earn, income tax is a levy on earnings, and the primary market relates to the issuance of new securities, not a deposit product used for check withdrawals.