ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Balance
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Withdraw
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Bankruptcy
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Overdraw
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Detailed explanation-1: -An overdraft allows you to spend more money than you have in your bank account-up to a limit agreed with your bank. You only pay interest on the overdraft money you use.
Detailed explanation-2: -A discrepancy could happen for many reasons. The bank may have made a deposit to the wrong account, for example. You may also find that you have withdrawals that have not been authorized, or perhaps the bank has made an error.
Detailed explanation-3: -Overdraft fees are incurred when you spend more money than you have available in your bank account, and banks typically charge around $35 per instance, meaning that you can be charged multiple overdraft fees in a single day.
Detailed explanation-4: -An overdraft lets you borrow money through your current account by taking out more money than you have in the account – in other words you go “overdrawn”. There’s usually a charge for this. You can ask your bank for an overdraft – or they might just give you one – but don’t forget that an overdraft is a type of loan.