Final answer:
Reviewing a transaction log is essential for managing personal finances, tracking cash flow, and preventing overdraft fees. It also helps in detecting unauthorized transactions and maintaining accurate records for budgeting. Banks facilitate these transactions and provide convenience to customers by eliminating the need to carry large amounts of cash and allowing easy access to funds.
Step-by-step explanation:
Reviewing an account transaction log is a crucial aspect of effective financial management. Travis received a bank statement with his transactions listed, which allows him to track his spending, cash flow, and ensure that there are no unauthorized transactions. This practice can help avoid potential overdrafts, which come with fees for having insufficient funds, and maintain an accurate balance which is necessary for budgeting and planning financial activities. It's important not only for personal financial management but also provides an opportunity to monitor and dispute any irregularities or fraudulent transactions promptly.
Banks serve as financial intermediaries in the financial capital market, facilitating an array of transactions and offering convenience to both individuals and businesses. By using banking accounts, customers are able to manage their financial resources more efficiently, minimising the need to carry large amounts of cash and enabling them to engage in various economic activities such as shopping, traveling, paying workers, or receiving and extending payments for goods and services. Storing funds in a bank account permits easy access to one’s money through various means, including direct withdrawal, checks, or debit cards, which is integral in a modern economy.
In essence, analyzing transaction logs enables individuals or businesses to manage their finances by ensuring that the funds deposited in the accounts are used as intended and that the accounts remain in good standing.