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American_Bankers_Association

CTFA · Question #93

An arrangement between the account holder and the depository institution wherein the institution automatically pays a check that overdraws the account is called:

The correct answer is D. Overdraft protection. See the full explanation below for the reasoning.

Fiduciary and Trust Activities

Question

An arrangement between the account holder and the depository institution wherein the institution automatically pays a check that overdraws the account is called:

Options

  • AOverdrafts
  • BUndercrofts
  • CCheckbook ledger
  • DOverdraft protection

How the community answered

(32 responses)
  • A
    9% (3)
  • B
    3% (1)
  • C
    3% (1)
  • D
    84% (27)

Topics

#overdraft protection#checking accounts#depository institution#account agreements

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