Final answer:
The statement is true; checking accounts provide a clear track record of financial transactions, making it easier to manage money and avoid fees compared to using cash. They offer convenient access to funds and are key to a complex economy by streamlining large volumes of transactions.
Step-by-step explanation:
One advantage of using a checking account over cash is that you can keep a visible track record of income and expenses. This statement is true. A checking account facilitates transactions by giving easy access to funds through writing checks or using a debit card, where purchases are deducted from the checking account.
This provides a clear record of your financial transactions, which can be crucial for managing budgets and tracking where your money goes. Balancing your checkbook is an example of how one can maintain a record of their income and expenditures.
It helps avoid overdraft fees and insufficient funds by providing a clear view of the amount of money available at any given time. Conversely, dealing strictly with cash would require one to manually track all transactions which can be cumbersome and less reliable.
The economy would struggle if all payments were made only in cash. For both individuals and businesses, a checking account offers a secure way to store money and a convenient means to access it as needed, thus eliminating the need to carry large sums of money for purchases or payroll.