Which term means money added to an account?

Prepare for the 6th Grade Financial Literacy Test with interactive quizzes, flashcards, and detailed explanations. Boost your understanding of essential financial concepts and get ready to excel!

Multiple Choice

Which term means money added to an account?

Explanation:
Money added to an account is called a deposit, and it increases the balance. Deposits can come from cash, a check, or a direct transfer and they boost the amount you have available. This is different from a withdrawal, which takes money out and lowers the balance; if you take out more than you have, the account can be overdrawn. For example, if your balance is $100 and you deposit $25, your balance becomes $125.

Money added to an account is called a deposit, and it increases the balance. Deposits can come from cash, a check, or a direct transfer and they boost the amount you have available. This is different from a withdrawal, which takes money out and lowers the balance; if you take out more than you have, the account can be overdrawn. For example, if your balance is $100 and you deposit $25, your balance becomes $125.

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