The Least Effective Method of Protecting Against Overdrafts Generally Is

question 46

Multiple Choice

The least effective method of protecting against overdrafts generally is to

• A)maintain a larger-than-normal account balance.
• B)arrange for automatic transfers from a savings account.
• C)arrange for a credit-card loan to cover the overdraft.
• D)ignore them since banks do not charge for overdrafts.

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Definitions:

Dividend Income

Income received from owning shares in a corporation, typically paid out from the corporation's profits.

Economic Benefit

The advantage or gain received by individuals or businesses, often used in the context of employee compensation, taxation, and public policy.

Recognize Income

The process of reporting income on the tax return in the year it is received or accrued, according to IRS rules.

Tax Purposes

This encompasses reasons or considerations related to the assessment, computation, and payment of taxes.