Which of the following is a common reason why some individuals remain unbanked?

• A. High levels of investment in the stock market
• B. Preference for using only credit cards
• C. Mandatory government savings accounts
• D. Lack of access to banking services in their area

Answer: (D)

Verified step by step guidance

1. Understand the term 'unbanked': It refers to individuals who do not have access to or do not use traditional banking services such as checking or savings accounts.
2. Analyze each option to see if it logically explains why someone might remain unbanked:
3. - High levels of investment in the stock market imply financial engagement, which usually requires banking services, so this is unlikely to be a reason for being unbanked.
4. - Preference for using only credit cards suggests usage of financial services, which contradicts being unbanked.
5. - Mandatory government savings accounts would mean forced banking participation, so it cannot explain being unbanked.
6. Recognize that 'Lack of access to banking services in their area' directly addresses a barrier to banking, making it a common and valid reason for individuals to remain unbanked.