Future Business Leaders of America (FBLA) Agribusiness Practice Test

What type of account typically uses a passbook?

1. Checking account

2. Savings account

3. Investment account

4. Retirement account

The correct answer is: Savings account

A passbook is commonly associated with a savings account, as it serves as a physical record of the account's transactions, including deposits, withdrawals, and interest earned. This type of account encourages saving by allowing account holders to earn interest on their deposited funds while providing easy access to their balance and transaction history. Passbooks are less frequently used in the context of checking, investment, or retirement accounts, where electronic statements and other forms of record-keeping are more prevalent. The primary purpose of a passbook is to help individuals track their savings over time within a savings account structure.