What type of account does Peter hold at Chase?

The answer identifies that Peter holds a checking account at Chase, which is a type of deposit account that allows for numerous withdrawals and deposits. Checking accounts are typically used for day-to-day transactions, such as paying bills, making purchases, and receiving deposits like salaries. They are designed for high liquidity; customers can access their funds easily through checks, debit cards, or electronic transfers.

In contrast, savings accounts are primarily intended for saving money, often earning interest over time but limiting the number of transactions to encourage saving. Investment accounts are usually set up for purchasing stocks, bonds, or mutual funds, focusing on long-term growth rather than easy access to funds. Retirement accounts, such as IRAs or 401(k) plans, are specifically designed for retirement savings, often with tax advantages and penalties for early withdrawal. Understanding the specific purpose of these account types helps distinguish why a checking account would be the correct choice in this context.