A sum of money deducted from your account is called what?

• A. Debit
• B. Credit
• C. Deposit
• D. Balance

Answer: (A)

A deduction from your account is called a debit. When you spend, withdraw cash, or are charged a fee, the bank records a debit against your account, which lowers your available balance. In contrast, a credit is money added to your account (like a paycheck or refund), a deposit is placing money into the account, and the balance is simply the current amount you have in the account. So, because it describes money leaving your account, the correct term is debit.