Which statement correctly distinguishes an overdraft from an ordinary positive bank balance?

Type: MCQ • Marks: 1

A. An overdraft represents an amount owed by the account holder to the bank under the facility

B. An overdraft is always Government revenue

C. An overdraft is physical cash

D. An overdraft is a grant

Explanation

In an overdraft, the bank has effectively financed withdrawals beyond the available balance.

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UPSC Principal & Vice Principal Management Finance Administration

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