Quint signs a check "pay to the order of Rona" drawn on Quint's account at Suburban Bank. Quint has $400 in his account but the amount of the check is $500, which the bank pays. This is
A)a dishonored check.
B)an overdraft.
C)a certified check.
D)a stale check.

Question

Quizplus · Accepted Answer

An overdraft occurs when a bank completes a payment for more than the current account balance. In this case, the bank paid out $500 when Quint only had $400, resulting in an overdraft.

Quint Signs a Check "Pay to the Order of Rona