BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When liquidity occurs
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When stocks are sold at a high price then it was bought for
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When your withdrawal from a bank account exceeds the available balance
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When you purchase an item on credit
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Detailed explanation-1: -An overdraft occurs when you don’t have enough money in your account to cover a transaction and the bank pays it. Examples are overdrafts caused by check, in-person withdrawal, debit card purchase, ATM withdrawal, or other electronic means.
Detailed explanation-2: -An overdraft happens when you don’t have enough money available to cover a purchase or a payment. Another way of saying this is an overdraft happens when a transaction exceeds your available balance. When this happens, we’ll either pay it for you, overdrawing your account, or we’ll decline it or return it unpaid.
Detailed explanation-3: -You agree a limit with your bank and can spend money up to that limit. Unauthorised overdrafts: these are also known as ‘unplanned’ or ‘unarranged’ overdrafts and happen when you spend more than you have in your bank account without agreeing it in advance. This includes going over the limit of an authorised overdraft.
Detailed explanation-4: -It is possible to withdraw funds beyond the account balance, but they are subject to repercussions, bank terms, and fees. Funds withdrawn beyond available funds are deemed to be overdrafts that can incur penalties.
Detailed explanation-5: -So in a nutshell, your available balance will only show how much money you actually have in your account, and won’t include any overdraft facility you’ve agreed.