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Suppose your bank honors a check for which you don't have sufficient funds in your checking account. This action means that you've arranged beforehand for a/an _______ loan.

A. overdraft
B. mortgage
C. installment
D. personal

User Pradheep
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1 Answer

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The correct option is A.
An overdraft is a banking arrangement, which allows a particular bank customer to continue to withdrawal money even though his account has no fund in it or it has insufficient fund. Prior agreements are often in place before a customer can have access to overdraft and the interests are often within normal range if the amount overdrawn is within the agreed overdraft limit.
User Rosscova
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