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O-LevelCommerceCredit7100/12 · May/June 2015 · Q381 Mark

Which statement is true of a bank overdraft?

ACollateral security must be provided.

BInterest is calculated on a daily basis.

CIt is a formal way of borrowing money.

DIt is available to all applicants.

✓ Correct answer

B: Interest is calculated on a daily basis.

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About this question

Topic: Credit, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2015 Paper 1 Variant 2, question 38.

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