Dick signs a check "pay to the order of Sally" drawn on Dick's account in Suburban Bank. Dick has $400 in his account but the amount of the check is $500, which the bank pays. This is

Question

Dick signs a check "pay to the order of Sally" drawn on Dick's account in Suburban Bank. Dick has $400 in his account but the amount of the check is $500, which the bank pays. This is​

Quizplus · Accepted Answer

This is an overdraft because the amount of the check is more than the available balance in Dick's account. The bank paid the check despite the insufficient funds, which will likely result in fees for Dick.

Dick Signs a Check "Pay to the Order of Sally