Concept:An overdraft is a short-term credit facility that allows a current account holder to withdraw more money than the balance available in the account.
Explanation:The key idea is the ability to withdraw in excess of the deposited balance.
This facility is normally given only to current account holders.
For example, if a customer has
N10,000 in the account but needs
N20,000, the bank may allow an overdraft.
The bank advances the shortfall, and the customer promises to repay it by a specific date.
Such an arrangement is common among salary earners with a regular and stable income.
Repayment is made either as a full deduction or in installments from the customer’s next deposit or salary.
Thus, the correct term for withdrawing more than the account balance is overdraft.
Answer:B. overdraft