Question

alex has not been keeping his banking records up to date. on his latest bank statement, he found that he had been charged an overdraft fee for writing a bad check. in addition to his being charged a fee, which of these is another possible consequence of an overdraft?
the bank will close the merchant’s account.
the merchant who received his check will be charged an overdraft fee.
the bank will cancel his debit card.
the merchant who received his check will expect repayment and a penalty fee.

Explanation:

• Analyze each option:
• Option 1: Overdraft by Alex doesn't lead to closing merchant's account.
• Option 2: Merchant isn't charged Alex's overdraft fee.
• Option 3: Overdraft alone doesn't cause debit card cancellation.
• Option 4: When Alex overdraws, the check bounces, so the merchant (who didn't receive payment) will expect Alex to repay the amount plus a penalty fee.

Answer:

D. The merchant who received his check will expect repayment and a penalty fee.