Which of the following is true regarding what a bank may do to offer overdraft protection to customers?

A) In regard to overdraft protection a bank may (1) credit a customer's checking account although federal law prohibits charging for this service, (2) link a checking account to the customer's savings account to cover the overdraft, and (3) link a checking account to the customer's credit card to cover the overdraft.
B) In regard to overdraft protection a bank may (1) credit a customer's checking account and charge for this service, (2) link a checking account to the customer's savings account to cover the overdraft, and (3) link a checking account to the customer's credit card to cover the overdraft.
C) In regard to overdraft protection a bank has only two options (1) link a checking account to the customer's savings account to cover the overdraft, and (2) link a checking account to the customer's credit card to cover the overdraft.
D) Under federal law, the only option open to a bank in the event of a customer's overdraft is to credit the customer's account although no charge may be made for the service.
E) Under federal law, the only option open to a bank in the event of a customer's overdraft is to credit the customer's account, and a charge may be made for the service.

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Vanessa Naredo · Accepted Answer

Final Answer : B, Explanation :  Banks can offer various forms of overdraft protection, including crediting a customer's checking account for a fee, linking to a savings account, or linking to a credit card. These services provide customers with options to manage their accounts and avoid the consequences of overdrafts.

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