What is an Overdraft Protection Line?

AB

An overdraft protection line is a form of credit extended by a bank or financial institution to a depositor that is linked to their checking account. This line of credit allows the depositor to overdraw their account up to a specified amount, providing a safety net against accidental overdrafts or unexpected expenses.

Option A is incorrect because it does not mention the ability to overdraw the account. A line of credit linked to a checking account can be used for other purposes, such as financing a large purchase or consolidating debt.

Option B is incorrect because it describes an overdraft account, not an overdraft protection line. An overdraft account allows a depositor to overdraw their account up to a specified amount, but it is not a line of credit.

Option C is the correct answer because it accurately describes an overdraft protection line. It is a line of credit linked to a checking account that allows a depositor to overdraw their account up to a specified amount.

Option D is incorrect because the overdraft protection line does exist and is a common feature offered by banks and financial institutions.