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O-LevelCommerceCredit7100/12 · May/June 2021 · Q341 Mark

What is a characteristic of a bank overdraft?

Aavailable to everyone

Bno interest is charged

Cthe borrower must provide collateral security

Dthe interest rate is variable

✓ Correct answer

D: the interest rate is variable

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About this question

Topic: Credit, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2021 Paper 1 Variant 2, question 34.

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