Which term refers to money deposited INTO an account?

Prepare for the NGPF Banking Test. Study with flashcards and multiple choice questions, each question includes hints and explanations. Get exam-ready today!

Multiple Choice

Which term refers to money deposited INTO an account?

Explanation:
When money is deposited, the bank increases the customer’s balance by crediting the account. A credit entry reflects more funds being available because the bank’s liability to the customer has grown. Debits are used for funds leaving the account, and balance is simply the current total in the account. So the term that describes money deposited into an account in the bank’s records is credit.

When money is deposited, the bank increases the customer’s balance by crediting the account. A credit entry reflects more funds being available because the bank’s liability to the customer has grown. Debits are used for funds leaving the account, and balance is simply the current total in the account. So the term that describes money deposited into an account in the bank’s records is credit.

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