Jen signs a check "pay to the order of Key" drawn on Jen's account in Little Bank to buy Key's car.If there are insufficient funds in Jen's account to cover the amount of the check,but the bank pays it,this creates
A)a cashier's check.
B)an overdraft.
C)a stale check.
D)a stop-payment order.

Question

Quizplus · Accepted Answer

If there are insufficient funds in Jen's account to cover the amount of the check, but the bank pays it, it creates an overdraft, where the bank essentially loans Jen the money to cover the check amount.

Jen Signs a Check "Pay to the Order of Key