Question

What does an overdraft allow an individual to do?

• A. Deposit more money than they have in their account.
• B. Withdraw more money than they have in their account.
• C. Earn higher interest rates on their savings.
• D. Invest in stocks and bonds.

Answer 1

Answer:

B. Withdraw more money than they have in their account.

Overdraft

• Another type of loan offered by commercial banks to individuals.

• This is an opportunity for individuals to withdraw more money than they have in their bank account.

• This opportunity is usually given to those who have a conventional investment style.