Multiple choice

When money is withdrawn from the bank, the bank ________ the account of the customer.

  1. credits

  2. debits

  3. either (1) or (2)

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When you withdraw money, the bank reduces your account balance. In banking terminology, reducing a customer's account is done by debiting it. From the bank's perspective, the customer's account is a liability (money the bank owes), and debiting a liability reduces it. Credit would increase the balance. This is the opposite of how customers record transactions in their own books.