Multiple choice

The client can instruct the bank to collect money, say interest or dividend on investments made by the client and to make payments say premiums of insurance policy on his behalf. The bank _______ the client’s account with such collections made and ________ the clients account with such payments.

  1. credits, credits

  2. debits, debits

  3. credits, debits

  4. debits, credits

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

The bank credits the account when the bank credits amount in the account. On the other hand, when the bank deducts any amount from your account, it debits the account.