Which of the following best describes an overdraft fee?
removing money from an account, typically for payment
percentage charged for the use of borrowed money
the amount of money a consumer is allowed to spend on their credit card
a fee charged when an account holder uses more than their credit line with their credit card
is it d
Right.
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Yes, the correct answer is d) a fee charged when an account holder uses more than their credit line with their credit card.
To arrive at this answer, let's break down the options:
a) Removing money from an account, typically for payment: This describes a withdrawal or payment transaction, but it does not specifically refer to an overdraft fee.
b) Percentage charged for the use of borrowed money: This refers to an interest rate charged on borrowed money, such as a loan or credit card balance. It does not specifically relate to an overdraft fee.
c) The amount of money a consumer is allowed to spend on their credit card: This refers to a credit limit, which is the maximum amount a consumer can spend on their credit card. It does not pertain directly to an overdraft fee.
d) A fee charged when an account holder uses more than their credit line with their credit card: This accurately describes an overdraft fee. An overdraft fee is typically charged when someone exceeds their credit limit on their credit card, resulting in a fee being assessed by the bank or credit card issuer.
Therefore, the most fitting description for an overdraft fee is d) a fee charged when an account holder uses more than their credit line with their credit card.