A customer is granted an overdraft by the bank subject to his operating a?

Assessment: WAEC SSCE - Commerce - 1991 (Objective) Subject: Commerce

Question 1 Report

A customer is granted an overdraft by the bank subject to his operating a?
Answer Details
When a customer is granted an overdraft by the bank subject to his operating a current account, it means that the bank allows the customer to withdraw more money than they have in their account, up to a specified limit. The customer can use this overdraft to cover expenses or make purchases even when there is not enough money in their account. The customer will be charged interest on the amount they have overdrawn until they pay it back to the bank. It's important to note that overdrafts are typically granted for short-term borrowing only and can be an expensive way to borrow money over a long period.

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning