International Baccalaureate (IB) Practice Exam

Is having more than one bank account always a bad idea?

1. True

2. False

3. Only for individuals with low income

4. Only if not managed properly

The correct answer is: False

Having more than one bank account can provide various benefits that make it a strategic choice rather than a negative one. For instance, individuals might use multiple accounts to manage different financial goals effectively, such as having separate accounts for savings, bills, and personal spending. This can enhance budget management and organizational clarity, allowing individuals to focus more on their financial objectives. Furthermore, having accounts at different banks can be advantageous for security reasons. In case of bank errors, fraud, or financial emergencies, access to multiple accounts can provide an extra layer of protection. People might also use various accounts to take advantage of differing interest rates or bank services that align better with their needs. While having multiple accounts requires careful management to avoid fees or confusion, the possibility of beneficial uses and the potential for improved financial organization make it clear that multiple accounts can indeed be a pragmatic choice for many individuals.