It is FALSE to state that an overdraft is a check that cannot be covered by funds in the account.
An overdraft occurs when you spend more money than is available in your bank account. It's like borrowing from the bank.
For example, if you write a check or make a purchase that exceeds your account balance, the bank may cover the payment, but you'll owe them the amount you went over.
This might result in fees. It's essential to keep track of your account balance to avoid overdrafts. In summary, an overdraft means spending more money than you have, and it's important to manage your finances responsibly to avoid extra charges and debts.
Full Question:
Although part of your question is missing, you might be referring to this full question:
An overdraft is a check that cannot be covered by funds in the account. True or False?