6. you choose option d for overdraft options. what would happen if you had $10 in your checking account and…

6. you choose option d for overdraft options. what would happen if you had $10 in your checking account and completed the following debit card transactions on the same day: $45 for groceries $20 for movie tickets $15 for popcorn and soda a. you would be able to purchase the groceries, but would not be able to buy the movie tickets and popcorn and soda. b. you would be able to purchase everything, and you would be charged one overdraft fee of $37. c. you would be able to purchase everything, and you would be charged three overdraft fees totaling $111. d. you would be able to purchase everything, and you would owe the bank $70 and be charged three overdraft fees totaling $111. 7. assuming you have a tcf free student checking account, how many maximum overdraft fees can you incur in one day? a. 1 b. 2 c. 5 d. 8 8. which of these tcf checking account fees is the most expensive? a. stop payment fee b. deposited item return fee c. paper statements fee d. overdraft fee (option d) 9. you have the following transactions post to your account on the same day: your paycheck deposit, a check you wrote for your rent, and a debit transaction for groceries. which would be processed first? a. your paycheck deposit b. the check you wrote for rent c. the debit transaction for groceries d. it depends which day of the week it is 10. you deposit your birthday check for $50 at the tcf atm. when will you have access to the money? a. immediately b. same day c. one business day d. one week later part ii: what did you learn? use what you learned from analyzing the checking account agreement to answer this question. 11. what advice would you offer to someone who is considering opening a checking account? what fees and criteria should they pay attention to? why?

6. you choose option d for overdraft options. what would happen if you had $10 in your checking account and completed the following debit card transactions on the same day: $45 for groceries $20 for movie tickets $15 for popcorn and soda a. you would be able to purchase the groceries, but would not be able to buy the movie tickets and popcorn and soda. b. you would be able to purchase everything, and you would be charged one overdraft fee of $37. c. you would be able to purchase everything, and you would be charged three overdraft fees totaling $111. d. you would be able to purchase everything, and you would owe the bank $70 and be charged three overdraft fees totaling $111. 7. assuming you have a tcf free student checking account, how many maximum overdraft fees can you incur in one day? a. 1 b. 2 c. 5 d. 8 8. which of these tcf checking account fees is the most expensive? a. stop payment fee b. deposited item return fee c. paper statements fee d. overdraft fee (option d) 9. you have the following transactions post to your account on the same day: your paycheck deposit, a check you wrote for your rent, and a debit transaction for groceries. which would be processed first? a. your paycheck deposit b. the check you wrote for rent c. the debit transaction for groceries d. it depends which day of the week it is 10. you deposit your birthday check for $50 at the tcf atm. when will you have access to the money? a. immediately b. same day c. one business day d. one week later part ii: what did you learn? use what you learned from analyzing the checking account agreement to answer this question. 11. what advice would you offer to someone who is considering opening a checking account? what fees and criteria should they pay attention to? why?

Answer

Explanation:

Step1: Calculate total transactions

The total amount of debit - card transactions is $45 + 20+15=$80$. You have $10$ in your account. With Option D for overdraft, the bank will cover the transactions.

Step2: Calculate overdraft amount

The overdraft amount is $80 - 10=$70$. And since there are 3 transactions, and assuming an overdraft fee per - transaction, if the overdraft fee is $37$ (a common amount), the total overdraft fees are $3\times37 = $111$.

Step3: Analyze question 6

Based on the above calculation, you would be able to purchase everything, owe the bank $70$ and be charged three overdraft fees totaling $111$. So the answer to question 6 is d.

Step4: Analyze question 7

Typically, for many checking accounts, the maximum number of overdraft fees in a day is 5. So the answer to question 7 is c.

Step5: Analyze question 8

Among stop - payment fee, deposited item return fee, paper statements fee and overdraft fee, the overdraft fee is usually the most expensive. So the answer to question 8 is d.

Step6: Analyze question 9

Banks usually process larger transactions first. A rent check is likely a larger amount compared to a grocery debit transaction and a paycheck deposit is a credit. So the check for rent is likely to be processed first. The answer to question 9 is b.

Step7: Analyze question 10

When depositing a check at an ATM, access to the funds is usually available one business day later. So the answer to question 10 is c.

Answer:

  1. d. You would be able to purchase everything, and you would owe the bank $70$ and be charged three overdraft fees totaling $111$.
  2. c. 5
  3. d. Overdraft Fee (Option D)
  4. b. The check you wrote for rent
  5. c. One business day