Understanding Overdrafts

Understanding Overdrafts

Assessment

Interactive Video

Business

9th - 10th Grade

Practice Problem

Hard

Created by

Jennifer Brown

FREE Resource

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is an overdraft primarily used for?

Paying off mortgages

Daily shopping

Unexpected expenses

Long-term investments

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does an arranged overdraft differ from an unarranged overdraft?

It is set up without the bank's approval

It is only available to businesses

It is pre-agreed with the bank

It has higher fees and interest rates

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which type of overdraft typically involves negotiating terms with the bank?

Unarranged overdraft

Arranged overdraft

Emergency overdraft

Temporary overdraft

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential consequence of frequently using an unarranged overdraft?

Increased savings

Cycle of debt

Lower interest rates

Improved credit score

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it important to use overdrafts responsibly?

To qualify for more loans

To improve your credit score

To avoid high fees and interest rates

To increase your bank balance

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