Multiple choice

Overdraft refers to

  1. Deposit of money in the bank

  2. To withdraw more than the customer has deposited

  3. Charges imposed by bank for its services

  4. A lump-sum advance repayable after a fixed period

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

Right answer Because in overdraft, money is withdrawn more than deposited. It is for current a/c holders.