8
QuizMultiple Choice

Consumer Responsibilities — Quiz

Question 8 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Dwayne had a balance of 95 point 1 3 dollars in his checking account on Monday morning. That day he used his debit card for these transactions: Breakfast at the corner bagel shop: 8 point 5 3 dollars Gas in the car: 28 point 6 0 dollars Cable bill: 65 point 3 9 dollars Oil change: 30 point 6 4 dollars Dwayne's bank uses a balance system of debiting from highest to lowest. The bank will not return amounts up to a total of 50 dollars in overdrafts, but they do charge a fee for each overdraft. How many overdraft fees will Dwayne incur?

Answer
A
1
B
2
C
3
D
4

Explanation

The bank processes the transactions from largest to smallest: $65.39, $30.64, $28.60, then $8.53. After the $65.39 cable bill, Dwayne has $29.74 left, so each of the remaining three transactions overdraws the account. Together those overdrafts total $38.03, which is within the bank’s $50 limit, so all three transactions go through and each incurs a fee. The answer is C, 3.

AI-written and checked against the verified answer.

Previous
Next