Advertisements
Advertisements
Question
A depositor is allowed to withdraw more money than what is there in his account:
- What is the facility called?
- In which type of account is it permitted?
Solution
- This facility is known as Overdraft facility.
- This facility is typically available to depositors who have a current account.
RELATED QUESTIONS
Which of the following does not belong to the group?
Explain any four advantages of a bank account.
Which account holder gets Overdraft facility?
What is meant by Discounting of a Bill of Exchange?
Differentiate between current deposit account and fixed deposit account.
The advantage of having a bank account is that it ______.
Which is the primary function of Commercial Banks?
Which of the following is not the function of commercial bank?
Overdraft facility is usually availed by ______.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Commercial Banks keep only a fraction of deposits as Cash Reserves and use the remaining deposits for given loans, etc.
Reason (R): All the depositors of Commercial Banks do not approach the banks for withdrawal of money at the [iame time and also they do not withdraw the entire amount in one go.
