ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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withdrawal
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deposit
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balance
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charge
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Detailed explanation-1: -When your bank account is debited, money is taken out of the account. The opposite of a debit is a credit, in which case money is added to your account.
Detailed explanation-2: -What are debits and credits? In a nutshell: debits (dr) record all of the money flowing into an account, while credits (cr) record all of the money flowing out of an account. What does that mean? Most businesses these days use the double-entry method for their accounting.
Detailed explanation-3: -A customer’s periodic bank statement generally shows transactions from the bank’s perspective, with cash deposits characterized as credits (liabilities) and withdrawals as debits (reductions in liabilities) in depositor’s accounts.
Detailed explanation-4: -A bank debit occurs when a bank customer uses the funds in their account, therefore reducing their account balance. Bank debits can be the result of check payments, honored drafts, the withdrawal of funds from an account at a bank branch or via ATM, or the use of a debit card for merchant payments.