Question

    What does an 'Overdraft' facility in banking

    imply?
    A Minimum bank balance required for continuation of account. Correct Answer Incorrect Answer
    B Maximum Loan limit. Correct Answer Incorrect Answer
    C Minimum Deposit needed to open the account. Correct Answer Incorrect Answer
    D The account holder may withdraw more money than its deposit. Correct Answer Incorrect Answer

    Solution

    An overdraft is a banking facility that allows account holders to withdraw more money than they have in their accounts, essentially permitting a negative balance up to an approved limit. This can help manage short-term cash flow shortages.

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