Thelma signs a check "pay to the order of Uri" drawn on Thelma's ac?count in Verity Bank.Thelma has $400 in her account but the amount of the check is $500,which the bank pays.This is
A)a dishonored check.
B)an overdraft.
C)a postdated check.
D)a stale check.

Question

Quizplus · Accepted Answer

Thelma's check creates an overdraft, meaning she has withdrawn more money than she had in her account at the time of issuing the check. The bank has paid the check anyway, but Thelma will likely face overdraft fees and/or penalties.

Thelma Signs a Check "Pay to the Order of Uri