Question

Select the proper option from the options given below and rewrite the completed sentences.

Overdraft facility is given to ________.
(a) Savings account
(b) Current account
(c) Fixed account

Answer 1

Correct option - b
Overdraft facility is given to current account.

Explanation:
A current account holder enjoys the overdraft facility. The term “overdraft facility” means that a temporary arrangement is made whereby a customer is allowed to withdraw an amount of money greater than his prevailing account balance. For this overdraft facility, the bank charges interest on the amount overdrawn.