8/29 - banking pre-assessment knowledge check\nyou have $30 in your acct. how can a bank reorder 4 checks…
8/29 - banking pre-assessment knowledge check\nyou have $30 in your acct. how can a bank reorder 4 checks written today to maximize your fees?\nprocess the largest check first\nprocess the checks in random order\nprocess the checks in alphabetical order\nprocess the smallest check first
Answer
Explanation:
Step1: Analyze the impact of processing order on fees
When a bank processes checks, if the account balance is insufficient to cover a check, an overdraft fee is charged. If the largest check is processed first, it will quickly deplete the account balance ($30) and cause more subsequent checks to overdraw (as the remaining balance after the large - check is even smaller), resulting in more fees.
Step2: Analyze other options
- Random order: There is no guarantee of maximizing fees as it may not systematically create multiple overdrafts.
- Alphabetical order: Irrelevant to account balance and fee - generation logic.
- Smallest check first: Processing small checks first will keep the account balance relatively higher for longer, reducing the number of overdraft situations compared to processing the largest check first.
Answer:
Process the largest check first