Asked by Sonja Knezic on Jul 23, 2024
Verified
When an overdraft occurs,the bank becomes the customer's agent.
Overdraft
A payment by a bank on behalf of a customer for more than the customer has on deposit.
Agent
A person authorized to act on behalf of another and subject to the other’s control in dealing with third parties.
- Comprehend the impact of banking duties and customer entitlements with regards to check deposits and withdrawals.
Verified Answer
OO
oluwanifemi oluwagbemilaJul 28, 2024
Final Answer :
True
Explanation :
When an overdraft occurs, the bank covers the negative balance on behalf of the customer and becomes their agent to handle the transaction.
Learning Objectives
- Comprehend the impact of banking duties and customer entitlements with regards to check deposits and withdrawals.