Question

Question 1

You have $400 in your checking account, and deposit a check for $700. The
teller says that the $700 check is on hold for five days. Tomorrow, you want to
pay a $600 bill with a check. Should you write that check?
OA. Yes.
OB. No.
OC. Not sure.
OD. I was absent the day they taught that in math.

Answer 1

B. No, you should not write that check.

Step-by-step explanation:

To determine whether you should write a check for $600, we need to calculate the balance in your checking account after the check deposit and check hold.

Starting balance: $400. Deposit: $700. Check hold: $700.

$400 + $700 - $700 = $400.

Since your balance will remain at $400 after the check hold, you should not write a check for $600, as it will exceed your available balance.