Correct Answer: Exceeding the available balance in an account
Solution:
Overdraft means exceeding the available balance in an account.
What does 'overdraft' mean?
Practice Questions
Q1
What does 'overdraft' mean?
A type of loan
Exceeding the available balance in an account
A bank fee
A savings plan
Questions & Step-by-Step Solutions
What does 'overdraft' mean?
Correct Answer: Overdraft ka matlab hai ki aapke account mein jo balance hai, usse zyada paisa aapne withdraw kar liya hai.
Step 1: Understand that a bank account has a balance, which is the amount of money you have.
Step 2: Know that an overdraft happens when you spend more money than you have in your account.
Step 3: Realize that this means you are 'over' your available balance.
Step 4: Understand that banks may allow this but usually charge fees or interest.
Concept – Overdraft refers to a situation where a bank account holder withdraws more money than is available in their account, resulting in a negative balance.
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