What is the definition of a withdrawal limit?

A withdrawal limit refers to the predetermined maximum amount that a customer is allowed to withdraw from their account within a specified timeframe, often set on a per-transaction basis. This cap is important for financial institutions to manage risk, maintain liquidity, and comply with regulatory guidelines. Withdrawal limits can vary depending on the type of account, the bank's policies, and whether the withdrawal is being made from an ATM or a teller.

This definition aligns perfectly with the chosen answer, as it specifies the restriction placed on each transaction, ensuring customers can only access a certain amount of funds at one time. Having such limits helps banks control the flow of cash and minimizes the chances of fraud or unauthorized transactions.

The other options do not accurately capture the concept of a withdrawal limit. An unlimited amount that a customer can withdraw does not reflect a limit but rather a lack of restrictions. The total available balance in a customer's account represents funds available but does not denote any limitations on transaction amounts. An automatic withdrawal feature pertains to scheduled transactions rather than a customer’s maximum withdrawal capability at any given time.