Avoiding Overdraft Fees. You know someone who recentlyhad $90 in overdraft fees for two small debit cardtransactions. Explain to him why such high fees resultedfrom such small transactions and the relative benefits ofhaving an automatic funds transfer agreement versus anautomatic overdraft loan agreement versus overdraftprotection

Small purchases will simply add up once the order of payment fees area unit assessed, however, there…

Answered: Avoiding Overdraft Fees. You know…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

How can you avoid overdrafts and overdraft fees? What are the types of accounts in a bank?
Which of the following is true of EFT? It is easy to document purchase and sale transactions. It means Effective Funds Transfer. It cost more than receiving cash payments through the mail. It can process certain cash transactions at less cost than by using the mail.
I need the answer as soon as possible
Which of the following is the incorrect statement about Banking? Banking relates with lending money for personal need for profit Banks provides equipment purchase loan The Banks helps to give long term and short-term loans only Issuing cheques is the secondary objective of banking
Which of the following statements about an electronic funds transfer (EFT) is false? Multiple Choice EFT are checks written by the depositor, subtracted on the depositor's books, and sent to the payee but not yet turned in for payment at the bank statement date. Companies are increasingly using EFT because of its convenience and low cost. Payroll, rent, utilities, insurance, and interest payments are usually done by EFT. EFT is the electronic transfer of cash from one party to another. Cash receipts by EFT are listed with deposits and other additions. ▬▬ Q Search #t B 5
4
When a company has a generous credit policy, cash is tied up in receivables and the company must finance its expansion or the payment of its bills through increased borrowing. What label is given to this cost of selling on credit? Carrying cost Sales returns and allowances cost Bookkeeping cost Bad debit cost
Payday loans (also called cash advance loans) are short-term, high-interest loans marketed as a way for people to borrow money for a short period of time until their paycheck arrives. However, like many other short-term loans, they should be used with extreme caution. Payday loans typically carry a fixed fee of $15 to $30 per $100 borrowed, and lenders sometimes demand access to your checking account to make sure you will pay the fees. Complete parts (a) through (c) below GSTID a. Consider a payday loan that has a fixed fee of $17 per $100 borrowed that is due in 2 weeks (when your paycheck arrives). If you borrow $800, what is the total fee (not including your $800 principal) you owe the lender at the end of 2 weeks? $136 (Round to the nearest cent as needed.) b. What is the interest rate for that 2-week period? 17% (Round to the nearest whole number as needed.) What is the equivalent annual percentage rate (APR) for this loan? (Assume that there are 52 weeks in 1 year). How does this…
Bank can be a source of short-term funding in terms of credit card applications. These fundings on credit cards make sure that regular payments should be made. Group of answer choices True False
Credit cards allow people to purchase things that they can almost afford. Things are bought with the feeling that they will soon be paid for. However they also fuel the temptation to buy things that perhaps should have been resisted. This is especially true with the type of credit card that allows a consumer to spend freely for 6 months without being hit by interest. If the account can be zeroed out in that time, the card has given consumer an interest free loan. But it is possible that the consumer has spent up to the limit of the card, say $10,000 and must now pay this off at 24% APR.a) What is the monthly interest rate corresponding to 24% APR? divided by 12.b) How much interest is owed after 1 month on the $10,000? multiplied by the monthly interest rate.
Avoiding Overdraft Fees. You know someone who recently had $90 in overdraft fees for two small debit card transactions. Explain to him why such high fees resulted from such small transactions and the relative benefits of having an automatic funds transfer agreement versus an automatic overdraft loan agreement versus overdraft protection.

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