QuestionYour bank charges a \$25 fee for all returned checks. Which of the following remedies will avoid having to pay the returned check fee? A. Use a credit card that does not have a foreign exchange fee. B. Use electronic delivery of bank statements instead of paper delivery of bank statements. C. Use only ATM machines from your bank. D. Always ensure that your account has sufficient funds when paying using checks.
Studdy Solution
STEP 1
1. The returned check fee is charged when a check is returned due to insufficient funds in the account.
2. The remedies provided must be evaluated to determine which one directly addresses the issue of avoiding the returned check fee.
STEP 2
1. Analyze each remedy to determine its relevance to avoiding returned check fees.
2. Identify the remedy that directly ensures that checks are not returned due to insufficient funds.
STEP 3
Analyze remedy A: "Use a credit card that does not have a foreign exchange fee."
This remedy addresses foreign exchange fees related to credit card transactions, not the issue of returned checks due to insufficient funds.
STEP 4
Analyze remedy B: "Use electronic delivery of bank statements instead of paper delivery of bank statements."
This remedy addresses the method of receiving bank statements, not the issue of returned checks due to insufficient funds.
STEP 5
Analyze remedy C: "Use only ATM machines from your bank."
This remedy addresses using ATM machines from the bank to avoid ATM fees, not the issue of returned checks due to insufficient funds.
STEP 6
Analyze remedy D: "Always ensure that your account has sufficient funds when paying using checks."
This remedy directly addresses the issue of avoiding returned check fees by ensuring that there are sufficient funds in the account to cover the check amount. If the account has sufficient funds, the check will not be returned, thereby avoiding the returned check fee.
STEP 7
Identify the remedy that directly ensures that checks are not returned due to insufficient funds.
Remedy D: "Always ensure that your account has sufficient funds when paying using checks" is the correct remedy to avoid returned check fees.
The solution is Remedy D: "Always ensure that your account has sufficient funds when paying using checks."
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