Future Business Leaders of America (FBLA) Accounting Practice Test

What is the bank service charge?

1. A fee charged by the bank for maintaining records

2. The amount a depositor has in their account

3. A fee paid for withdrawing cash

4. An interest fee for loan processing

The correct answer is: A fee charged by the bank for maintaining records

The bank service charge refers to a fee that the bank imposes on customers for various services associated with maintaining their accounts. This charge is often related to the costs incurred by the bank for record-keeping and account maintenance, such as managing transactions, providing statements, and other administrative tasks. The definition includes a variety of services that may not be directly tied to specific transactions, making it distinct from other types of fees. For example, while withdrawing cash might be subject to certain fees in specific contexts, this does not accurately represent the broader category of bank service charges, which encompass general account management fees. Similarly, the balance in an account or fees related to loan processing do not pertain to the routine charges assessed for account upkeep. Thus, the choice that defines a bank service charge most accurately as a fee for maintaining records is correct.