Question

question 2 (10 points)
by the end of the month, maria spent more than she earned. her balance on
february 28 was -$6.58. what can she do to avoid an overdraft fee of $25.00 in the
future?
sign up for overdraft protection with her bank.
monitor her spending and maintain a positive balance.
spend more money to increase her balance.
question 3 (10 points)
match the following types of bank accounts with their key features.
competitive interest rates,
transactions limited to 6
times per month, check
writing privileges.
interest rates, typically
unlimited transactions, no
debit card.
fixed interest rates, early
withdrawal penalties,
various term lengths.
designed for everyday
transactions, no transaction
limits, debit cards, online

1. checking account
2. savings account
3. money market account
4. certificates of deposit (cds)

Explanation:

Question 2

• Overdraft protection can prevent fees by covering negative balances. Monitoring spending to keep a positive balance directly avoids overdrafts. Spending more would worsen the negative balance.

1. Money Market Accounts offer competitive interest rates, limited monthly transactions, and check-writing privileges.
2. Savings Accounts have interest rates, usually unlimited transactions, and often no debit card.
3. Certificates of Deposit (CDs) have fixed rates, early withdrawal penalties, and set term lengths.
4. Checking Accounts are for daily use, have no transaction limits, and include debit cards/online access.

Answer:

• Sign up for overdraft protection with her bank.
• Monitor her spending and maintain a positive balance.

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Question 3