9
QuizMultiple Choice

Lesson 4: Consumer Responsibilities

Question 9 • [PERFIN] Personal Finance, Sem 2 (26-27)

Shakira has a balance of $202.86 in her checking account on Saturday morning. She uses her debit card to pay her cell phone bill of $80.73 over the phone. She then picks up her dry cleaning, dog food at the pet store and groceries for debits of $16.89, $35.24, and $113.92. Shakira’s bank uses a balance system of deducting highest transactions first. 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 Shakira incur?

Answer
A
1
B
2
C
3
D
4

Explanation

Deduct the transactions from largest to smallest: $113.92 leaves $88.94, and $80.73 leaves $8.21. The $35.24 debit then overdraws the account by $27.03, and the final $16.89 debit increases the overdraft to $43.92. Since the bank covers overdrafts up to a total of $50 but charges a fee for each overdraft transaction, Shakira incurs 2 fees: choice B, 2.

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