Question

The withdrawal of an amount from a bank account is known as.
A) Debit
B) Saving
C) Credit
D) None of these

Answer 1

Hint:
Here, we will state the meaning of all the terms listed in the option and then, the term having the most similar meaning will be our required answer. Withdrawal is an act in which money is taken out from a bank account.

Complete step by step solution:
The given statement is related to banking and the financial sector. A bank is a financial institution which receives our deposits and gives us loans. If we have an account in a bank then it means that we can withdraw or deposit money as per our requirements and in some cases, we can get interest as well.
Now we will define the terms given in the options:
Debit: In banking terms, debit means to take out or remove a sum of money from our bank account.
Credit: It is opposite of debit, i.e. it means to add or deposit a sum of money in our bank account.
Saving: Saving means the amount of money which we have ‘saved’ or in other words, we have not spent or consumed.
Now, after knowing the meanings of all the above terms, we can say that the withdrawal of an amount from a bank account is known as debit.

Hence, option A is the correct answer.

Note:
Here, we can see, debit is the opposite of credit. Hence, we must not get confused between the two as it would change our answer completely. Having a bank account gives us many facilities like keeping our money safe, giving interest on the deposit money, etc. We can withdraw money or deposit our savings only if we have an account in a particular bank.