Economics B A-Level
Overdraft
What Overdraft means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Overdraft
Check what you remember
Read the wording for your board, then hide it and explain Overdraft in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A flexible, short-term facility allowing a bank account holder to withdraw more money than they have, up to an agreed limit, ideal for managing temporary cash flow shortages.
Topics that use Overdraft
- Types and sources of credit and the impact of credit within the economy (Pearson Edexcel A-Level)
Related terms
- Aggregate demand
- Business investment
- Financial institutions
- Leasing
- Loan
- Share capital
- Trade credit
- Venture capital
Using Overdraft in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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