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Which transactions can increase the balance in a checking account? Check all that apply.

a. direct deposit of a paycheck
b. debit of $10
c. ATM withdrawal of $40
d. EFT from a different bank into the account
e. monthly bank fee of $

User Zahema
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1 Answer

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Final answer:

Transactions that can increase the balance in a checking account include a direct deposit of a paycheck and an Electronic Funds Transfer (EFT) from a different bank. Debits, withdrawals, and bank fees typically decrease the balance.

Step-by-step explanation:

To increase the balance in a checking account, certain transactions are favorable compared to others. Let's evaluate the transactions listed:

Direct deposit of a paycheck - This is a common way to add funds to a checking account, as it represents income being deposited into the account.

Debit of $10 - A debit typically signifies money being taken out of the account, hence this would decrease the balance.

ATM withdrawal of $40 - Similar to a debit, an ATM withdrawal removes funds from the account, lowering the balance.

EFT (Electronic Funds Transfer) from a different bank into the account - This transaction indicates the transfer of funds from another source into the checking account, thereby increasing its balance.

Monthly bank fee - Bank fees are deductions from the account for the bank's services, which reduce the account balance.

Based on these options, the transactions that would increase the balance in a checking account are a and d: the direct deposit of a paycheck, and the EFT from a different bank into the account.

Understanding these transactions is essential for efficient financial management and maintaining a healthy money supply in your checking account. Being mindful of the different types of transactions can help individuals avoid overspending and overdraft fees.

User ArthurDenture
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