Travis signs a check "pay to the order of Umberto" drawn on Travis's account in Valley Bank. Travis 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)an oversight.
D)a stale check.

Question

Quizplus · Accepted Answer

This is an overdraft, as Travis has written a check for more money than is currently in his account. The bank has paid the check, but Travis will be responsible for paying the bank back the $100 difference.

Travis Signs a Check "Pay to the Order of Umberto