How can Camilla effectively manage her finances with her new checking account?

• A. By keeping cash at home.
• B. By reviewing her transaction history easily.
• C. By carrying a large amount of cash.
• D. By depending solely on credit cards.

Answer: (B)

Managing finances effectively with a checking account involves regularly monitoring transaction history. By reviewing her transaction history easily, Camilla can keep track of her spending, identify patterns, and ensure that her account balance remains in good standing. This practice helps her detect any unauthorized transactions or errors, make adjustments to her budget as necessary, and maintain awareness of her financial situation.

Having access to transaction history through bank statements or digital banking tools allows for better planning and financial decision-making, ultimately supporting her financial goals. In contrast, the other options may lead to financial mismanagement or increased risk. Keeping cash at home can expose her to theft or loss, carrying a large amount of cash increases the risk of losing money, and relying solely on credit cards can lead to debt if balances are not paid off promptly.