Question

question 7 of 25
which type of checking account pays interest on the mean balance of the
account during a particular cycle?
a. minimum balance account
b. cost - per - check account
c. free account
d. average balance account

Explanation:

An average balance account calculates the mean (average) balance over a specific cycle (e.g., a month) and pays interest based on that average. A minimum - balance account may waive fees if a certain minimum is maintained but doesn't focus on the mean balance for interest. A cost - per - check account charges per check written. A free account typically doesn't have fees but also doesn't pay interest based on mean balance. So, the account that pays interest on the mean balance of the account during a particular cycle is the average balance account.

Answer:

D. Average balance account