Final answer:
An overdraft is a deficit that occurs when withdrawals from a bank account exceed the available balance, potentially resulting in fees. This is different from a current account deficit, which involves national borrowing.
Step-by-step explanation:
money than the account hold:
Overdraft is a deficit in a bank account caused by drawing more money than the account holds. An overdraft occurs when a person spends more than the available balance in their bank account, leading to a negative balance. It is common for banks to charge a fee for this service, which can be costly.
Depositing money into an account increases the balance and reduces the possibility of an overdraft, while a current account deficit at a national level means the country is borrowing funds from abroad. A deficit in a bank account is caused by drawing more money than the account holds. This is known as an overdraft. It occurs when you spend more money than you have in your account, resulting in a negative balance. Some banks allow for overdrafts but charge a fee for this servic.