Question

question 12 of 20
how does making a payment by check affect your checking account balance?
a. your balance decreases immediately.
b. your balance is not directly affected.
c. your balance decreases the following month.
d. your balance decreases when the check is processed.

Explanation:

When you write a check, the funds remain in your checking account until the recipient deposits or cashes the check, and the financial institution processes the transaction. Only at that point is the amount deducted from your account balance. Option A is incorrect because the balance does not drop immediately; option B is wrong as the balance will be affected eventually; option C is incorrect because the timing depends on when the check is processed, not automatically the following month.

Answer:

D. Your balance decreases when the check is processed.