Question

Who is at risk of bouncing a check or incurring overdraft fees?

A) Someone with a high credit score
B) Someone with a low-risk tolerance
C) Someone who spends within their means
D) Someone who writes a check without sufficient funds

Answer 1

Incurring overdraft fees and bouncing a check can happen to anyone who writes a check without sufficient funds in their account. Low-risk tolerance and spending beyond means increase the risk of bouncing a check.

Step-by-step explanation:

Incurring overdraft fees and bouncing a check can happen to anyone who writes a check without sufficient funds in their account. It is important to keep track of your account balance and ensure that you have enough money to cover any checks you write. There are several factors that can increase the risk of bouncing a check, such as:

1. Low-risk tolerance: Someone who is more prone to taking financial risks may be more likely to write a check without sufficient funds.
2. Spending beyond means: Someone who spends more money than they have in their account is at a higher risk of bouncing a check.

In contrast, having a high credit score or spending within one's means can help reduce the risk of bouncing a check or incurring overdraft fees.