Clarice has ten checks outstanding totaling $500. She finds out that her checking account balance is $400. The least-cost solution to Clarice's problem is for her to
transfer money from her savings account into her checking account.
By transferring money from her savings account to her checking account, Clarice can cover the $500 in outstanding checks while avoiding any fees associated with insufficient funds. This option is typically the most cost-effective and straightforward solution to her shortfall.
This is the most logical choice as it directly addresses the $100 deficit in her checking account. By transferring funds, Clarice can ensure that all her checks will clear without incurring additional fees or financial penalties.
This option would lead to insufficient-fund charges, which can be quite high compared to simply transferring funds. Relying on the bank to cover the shortfall would create unnecessary expenses that could be easily avoided.
This choice does not resolve the issue at hand. Withdrawing $100 from her checking account would further exacerbate her problem, leaving her with an even lower balance and increasing the likelihood of bounced checks.
While this option might provide immediate funds, cash advances often come with high interest rates and fees. This could lead to a more expensive solution in the long run, making it less favorable than transferring funds from her savings account.
To effectively manage her checking account shortfall, Clarice should transfer money from her savings account, ensuring all outstanding checks are honored without incurring unnecessary fees. This approach is financially prudent, avoiding complications associated with other options that could lead to additional costs or worsening her financial situation.
Related Questions
View allThe passage is primarily concerned with which of the following?
Which statement best explains the impact of the author's decision to u...
The Stonewall riots (1969) are most closely associated with what movem...
Why did President Woodrow Wilson help develop the League of Nations in...
The passages are similar in that both
Related Quizzes
View allPraxis 5001 Test with Answers
Praxis 5002 Study Guide
5002 Praxis Practice Test
Reading & Language Arts Praxis 5002
Praxis 5002 Reading and Language Arts Exam
Praxis 5003 Exam with Outline
5003 Praxis Math Answers
Praxis 5003 Study Guide
Praxis Social Studies 5004
Praxis 5004 Social Studies
- ✓ 500+ Practice Questions
- ✓ Detailed Explanations
- ✓ Progress Analytics
- ✓ Exam Simulations