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WAEC Commerce 2011 Question 24

Question 24

Banking

An overdraft is the

  1. A.amount permitted to be withdrawn in excess of one's deposit.
  2. B.excessive cash withdrawn by commercial banks from the Central bank.
  3. C.credit balance standing in the name of a customer
  4. D.special deposit made by commercial banks.
Show the answer and explanation

Answer: A (amount permitted to be withdrawn in excess of one's deposit.)

Explanation

An overdraft lets a current account holder draw more than his balance.