Which of the following statements is true concerning overdrafts? A)

Which of the following statements is true concerning overdrafts?

A)

An effective way to prevent them is to “overload” the account.
B)

They can be avoided by arranging an automatic transfer from a savings account.
C)

They are inexpensive nuisances because banks usually do not charge for overdrafts.
D)

They differ from “bounced checks” in that “bouncing” a check is a mistake while an overdraft is deliberate.

ANSWER

B