Question

The following Table 1 shows the method of payment by 16 customers in a supermarket checkout line. Here, C = cash, CK = check, CC = credit card, D = debit, and O = other.

Answer 1

To use a check for payment, you need a checking account. The store gets the money by depositing the check. An overdraft occurs when you spend more money than you have.

Step-by-step explanation:

In order to use a check for payment for goods and services, you need to have a checking account with a bank. When you write a check, you are authorizing the bank to transfer money from your account to the person or business you are paying. The check must be filled out correctly with the payee's name, the amount, and your signature to be valid.

The store gets the money from the check by depositing it into their bank account. They can either cash the check or deposit it into their bank account, and the funds will be transferred to them from your account.

An overdraft occurs when you spend more money than you have in your bank account. This can happen if you write a check for an amount greater than your account balance or if you make a debit card purchase without enough funds in your account. When this happens, the bank may cover the transaction for you, but you will be charged an overdraft fee.