Question

Bank provides overdraft to:

• A. Savings Account holders
• B. Current Account holders
• C. Creditors
• D. All of them

Hint:

Remember: Overdraft = facility for Current Account holders only.

Answer 1

The Correct Option is B

Step 1: Understanding overdraft.
Overdraft facility allows account holders to withdraw more than the available balance in their account, up to a certain limit approved by the bank.
Step 2: Position in practice.
This facility is generally provided only to Current Account holders, not to Savings Account holders or creditors.
Step 3: Analyzing the options.
(A) Savings Account holders – Incorrect, no overdraft facility.
(B) Current Account holders – Correct, overdraft is mainly for business persons with current accounts.
(C) Creditors – Incorrect, overdraft is unrelated to creditors.
(D) All of them – Incorrect.
Step 4: Conclusion.
Hence, overdraft is provided to Current Account holders.