2
QuizMultiple Choice

Consumer Responsibilities

Question 2 • [PERFIN] Personal Finance, Sem 2 (26-27)

Dwayne had a balance of $95.13 in his checking account on Monday morning. That day he used his debit card for the following transactions:Breakfast at the corner bagel shop: $8.53Gas in the car: $28.60Cable bill: $65.39Oil change: $30.64Dwayne's bank uses a balance system of debiting from highest to lowest. The bank will not return amounts up to a total of $50 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 first transaction, $29.74 remains, so each of the next three transactions exceeds the remaining balance and incurs an overdraft fee. Together, those overdrafts total $38.03, which is within the bank’s $50 limit. Dwayne incurs 3 fees.

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