Which of the following is true regarding what a bank may do to offer overdraft protection to customers?
A) Under federal law,the only option open to a bank in the event of a customer's overdraft is to credit the customer's account although no charge may be made for the service.
B) In regard to overdraft protection a bank may 1) credit a customer's checking account and charge for this service,2) link a checking account to the customer's savings account to cover the overdraft,and 3) link a checking account to the customer's credit card to cover the overdraft.
C) In regard to overdraft protection a bank may 1) credit a customer's checking account although federal law prohibits charging for this service,2) link a checking account to the customer's savings account to cover the overdraft,and 3) link a checking account to the customer's credit card to cover the overdraft.
D) Under federal law,the only option open to a bank in the event of a customer's overdraft is to credit the customer's account,and a charge may be made for the service.
E) In regard to overdraft protection a bank has only two options 1) link a checking account to the customer's savings account to cover the overdraft,and 2) link a checking account to the customer's credit card to cover the overdraft.
Correct Answer:
Verified
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