International Baccalaureate (IB) Practice Exam

What is a consequence of overdrawing your checking account?

1. Bounced check fee from the store

2. Overdraft fee from your bank

3. Stress from money mismanagement

4. All of the above

The correct answer is: All of the above

Overdrawing a checking account can lead to a combination of financial and emotional consequences. One immediate consequence is the overdraft fee that banks typically charge when an account goes into negative balance. This fee can vary by institution but often amounts to a significant sum, adding to the financial burden on the account holder. Additionally, if a check is written for an amount greater than the available balance, it may bounce, resulting in a bounced check fee imposed by the store or recipient. This fee can further complicate financial matters for the individual. Lastly, the stress stemming from mismanaging money is a common psychological consequence of overdrawing an account. Individuals may feel anxious about their financial situation, which can be exacerbated by the additional fees and long-term implications of poor money management habits. Given these interconnected outcomes, it becomes clear why the choice encompassing all the consequences—both financial and emotional—accurately captures the multifaceted impact of overdrawing a checking account.