Question

Bank gives overdraft facility to _____________ account holders.

• A. Savings
• B. Current
• C. Fixed deposit
• D. Re-curring deposit

Answer 1

Answer: (B)

Current

An overdraft facility is a credit agreement made with a bank that allows an account holder to use or withdraw more money than what they have in their account up to the approved limit. The sanctioned overdraft limit and the interest charged will vary based on the nature of the asset offered as collateral.