Question

Which of the following is an example of overdraft protection?

O a block on transactions after $500 was spent in a day
O an update from the bank when an account balance is less than $50
O a debit card transaction clearing when there are insufficient funds in the account
O a call from the bank in regard to a fraudulent transaction

Answer 1

A debit card transaction clearing when there are insufficient funds in the account.

Answer 2

(B) an update from the bank when an account balance is less than $50

Explanation:

overdraft occurs when money is withdrawn in excess of what is on the current account. In this situation the account is said to be "overdrawn". This applies to debit cards and how much you have on your balance :)