When a transaction exceeds the available funds, which fee applies?

When a transaction exceeds the available funds, which fee applies?

• A. A maintenance fee.
• B. A fee for cash withdrawals.
• C. A fee charged when a transaction exceeds the available balance in an account.
• D. A fee for online banking.

Answer: (C)

The situation tests overdraft or non-sufficient funds fees. When you try to complete a transaction that would use more money than you have in the account, banks may charge a fee specifically for overdrawing. The option that describes “a fee charged when a transaction exceeds the available balance in an account” is exactly that fee. The other fees listed (maintenance, cash withdrawal, online banking) are not tied to spending beyond what’s available in your balance.

The situation tests overdraft or non-sufficient funds fees. When you try to complete a transaction that would use more money than you have in the account, banks may charge a fee specifically for overdrawing. The option that describes “a fee charged when a transaction exceeds the available balance in an account” is exactly that fee. The other fees listed (maintenance, cash withdrawal, online banking) are not tied to spending beyond what’s available in your balance.