You can be convicted for number of faults if you are driving without a driving license. For example you can also be convicted for not having insurance. Because driving without valid driving license invalidates your insurance also.
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He got arrested because he was driving in LA without a valid license. He had to be bailed out for $15,000.
A person caught driving without a valid vehicle registration will be given a ticket and their car may be impounded. If a person gets the car properly registered before the court date they may not have to pay the ticket but will have to pay the impound fee.
It cannot be definitely ruled out. Although the officer could have their dispatcher check with NM's DMV files to see if you DO have a valid license, you are REQUIRED to have your license in your possession at all time when driving. Without a license in actually your possession they could prevent you from continuing on your trip.
$200
It is written on the license, so you can check there.