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When customer’s account overdrawn or when customer has taken loan from banker, then the customera.Creditorb.Bailorc.Debtord.Agen

Question

When customer’s account overdrawn or when customer has taken loan from banker, then the customer

  1. a. Creditor
  2. b. Bailor
  3. c. Debtor
  4. d. Agen
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Solution

In the context of banking and financial terminology, when a customer's account is overdrawn or when the customer has taken a loan from a banker, the correct answer is:

c. Debtor

Explanation:

  • When a customer withdraws more money than they have in their account (overdraft) or when they take out a loan, they owe money to the bank or creditor.
  • In this scenario, the customer is considered the "debtor" because they are in debt to the bank.
  • The bank or financial institution is the lender or creditor in this situation.

This terminology is crucial in understanding the roles of different parties in financial transactions. The debtor is the one who borrows money or is in debt, while the creditor is the one who lends money or is owed a debt.

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