Future Business Leaders of America (FBLA) Accounting Practice Test

What are the fees charged for maintaining bank records called?

1. Account fees

2. Bank service charges

3. Transaction fees

4. Withdrawal fees

The correct answer is: Bank service charges

The fees charged for maintaining bank records are known as bank service charges. These fees typically encompass various costs associated with the operational aspects of an account, including record keeping, monthly statements, and other administrative services provided by the bank. Bank service charges can vary depending on the type of account and the services used. For instance, a checking account might have monthly service fees that cover the bank's costs in managing the account, such as issuing statements and handling account inquiries. Understanding these charges is important for account holders, as they can impact the overall cost of maintaining an account. Other types of fees, like account fees, transaction fees, and withdrawal fees, serve different purposes and relate to specific actions or account types rather than the general maintenance of bank records. Thus, bank service charges accurately describe the fees associated specifically with record maintenance at a bank.