In banking terminology, what term describes an outgoing funds transfer?

In banking terminology, what term describes an outgoing funds transfer?

• A. Debit
• B. Credit
• C. Deposit
• D. Transfer

Answer: (A)

The term used for money moving out of your account is debit. When you initiate an outgoing transfer, the bank records a debit to your account, which reduces your balance as the funds leave you and go to the recipient. A deposit or a credit, by contrast, represents funds coming into your account, increasing your balance. While “transfer” is a general word for moving money, it doesn’t specify direction, whereas “debit” explicitly indicates money exiting your account.

The term used for money moving out of your account is debit. When you initiate an outgoing transfer, the bank records a debit to your account, which reduces your balance as the funds leave you and go to the recipient. A deposit or a credit, by contrast, represents funds coming into your account, increasing your balance. While “transfer” is a general word for moving money, it doesn’t specify direction, whereas “debit” explicitly indicates money exiting your account.