Customer a Has $250 in His Account

question 200

Multiple Choice

Customer A has $250 in his account.  Six checks, totaling $325, have come in for payment.  One check is for $257.00, with the remaining five checks making up the difference to the $325 total.  First Bank pays the five smallest checks first, honors the $257.00 with overdraft protection, and charges the customer one overdraft fee.  Second Third Bank pays the largest ($257) check first, pays the five remaining smaller checks with overdraft protection, and then charges the customer five overdraft fees. Which of the following is correct?

• A) If this type of charge is legal; it is ethical.
• B) This type of charge is an example of taking unfair advantage.
• C) This type of charge is a conflict of interest.
• D) This type of charge is not an ethical issue.

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Definitions:

Permissable Leakage

The maximum amount of leakage allowed by regulation or specification, often referring to fluids or gas.

FMVSS 121

Federal Motor Vehicle Safety Standard 121, which specifies the requirements for air brake systems in heavy vehicles, ensuring safety and reliability.

Maximum Stopping Distance

The furthest distance a vehicle can travel from the point where brakes are fully applied to when it comes to a complete stop.

Mph

Miles per hour, a unit of speed indicating the number of miles covered in one hour.