Final answer:
Online banking may present a higher security risk due to potential cyber threats, while traditional banking may offer fewer specialized services but is not necessarily lacking in financial advice. Both types of banking are generally safe as deposits up to $250,000 are protected by the FDIC.
Step-by-step explanation:
Costs or disadvantages of Online Banking and Traditional Banking vary and are associated with different aspects of the banking experience. The drawbacks of each type of banking can be summarized as follows:
- A) Online Banking - Higher security risk: Due to the digital nature of online banking, there's a higher risk of cybersecurity threats such as hacking and phishing scams.
- B) Traditional Banking - Fewer specialized services: Physical banks may not offer as many tailored services as online platforms, which can often rapidly adapt to new financial tools and services.
- C) Online Banking - Not applicable, as online banking eliminates the need to travel to a physical location.
- D) Traditional Banking - Little or no access to expert financial advice may be incorrect as many physical banks offer the opportunity to speak with financial advisors, though this service can vary widely between institutions.
Regarding the extraordinary economic gains facilitated by money and banking, they come with potential dangers such as a decline in the convenience and safety of transactions and financial stress on banks, which can impede loans availability, as observed during the 2008-2009 Great Recession. It's worth noting that the Federal Deposit Insurance Corporation (FDIC) offers a layer of safety to deposits up to $250,000, ensuring that money in bank accounts is extremely safe regardless of the bank's status.