Commercial banks offer creditworthy customers automatic loans to cover checks written in excess of their checking account balance.

Question

Quizplus · Accepted Answer

This is true. The automatic loan is called an overdraft protection and it is a service offered by commercial banks to cover checks written in excess of the available funds in a checking account. The bank will loan the customer the necessary amount to cover the check and charge interest and/or fees for the service.

Commercial Banks Offer Creditworthy Customers Automatic Loans to Cover Checks