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Advantages of direct deposits of paychecks and other income to consumers include convenience, safety, and potential interest earnings: True/ False

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Final answer:

Direct deposit of paychecks offers convenience, safety, and the opportunity to earn interest, and is protected by the FDIC up to $250,000, making it a secure method of receiving income.

Step-by-step explanation:

True, the advantages of direct deposits of paychecks and other income include convenience, safety, and potential interest earnings. Direct deposit offers convenience as it eliminates the need to physically cash a check and ensures that the funds are available more quickly.

With regard to safety, direct deposit avoids the risk of losing a check or having it stolen. Additionally, funds deposited into interest-bearing accounts like savings accounts can accumulate interest over time. The Federal Deposit Insurance Corporation (FDIC) further enhances this safety by insuring deposits up to $250,000, ensuring that individuals' money is protected even in the event of bank failure.

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