Answer-What does an 'Overdraft' facility in banking imply?

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.

Question

What does an 'Overdraft' facility in banking imply?

A Minimum bank balance required for continuation of account.

B Maximum Loan limit.

C Minimum Deposit needed to open the account.

D The account holder may withdraw more money than its deposit.

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What does an 'Overdraft' facility in banking imply?

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