Multiple choice

The permission given to a bank customer to draw cheques in excess of his current account balance is called

  1. a personal loan

  2. an ordinary loan

  3. discounting a bill of exchange

  4. an overdraft

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An overdraft is a credit facility that allows a bank customer to withdraw more money than is available in their current account, up to an approved limit.