Which of the Following Statements About an Overdraft Facility Is

Multiple Choice

Which of the following statements about an overdraft facility is NOT correct?

A) Banks require an overdraft facility to be operated on a fully fluctuating basis.
B) Generally, the agreed interest rate on an overdraft is calculated by the bank on the balance at the end of the month.
C) The bank lender will charge an establishment fee to cover the establishment costs of an overdraft.
D) There is an unused limit fee that is much less than the actual overdraft interest rate.