Question

Which one of the following would not cause a bank to debit a depositor's account? a.Checks marked NSF b.Wiring of the depositor's funds to other locations c.Bank service charge d.Interest earned by the account

Answer 1

Answer: Interest earned by the account.

Explanation: When a bank debits an account money is been removed from the account. This can either be as a result of: the account owner withdrawing from the account, a cheque paid to another person, bank service charges.

While when a bank credits an account money is added to the account. It can occur as a result of : money paid into an account, bank interest paid on accounts.

Therefore interest earned on an account is credited to the account holder.