Question

question 16
3.5 pts
what banking service ensures a financial institution will honor a check even if it exceeds the account balance?
google translate
○ money order
○ check certification
○ stop - payment order
○ overdraft protection

Explanation:

• A money order is a prepaid payment instrument, not related to covering check amounts exceeding account balance.
• Check certification verifies the check's authenticity and available funds at the time of certification, but doesn't cover overdrafts.
• A stop - payment order is used to prevent a check from being processed, not to cover insufficient funds.
• Overdraft protection is a banking service that allows a check to be honored even if it exceeds the account balance by covering the shortfall (either by linking to another account, a line of credit, etc.).

Answer:

D. overdraft protection