Question

Select the most appropriate answer from the alternatives given below and rewrite the sentence

Bank gives overdraft facility to _______ account.
a) savings
b) current
c) fixed deposit
d) Recurring

Answer 1

Bank gives overdraft facility to current account.

Explanation:
Overdraft facility is provided to a trader according to the needs of his/her business. Usually, the business or firm opens a current account with the bank for the daily business transactions. Thus, overdraft facility is provided to the current account holders, i.e. the trader is allowed to withdraw amounts in excess of deposits to a certain prescribed limit, for which the bank charges a certain amount.