A bank issues a debit memorandum
A) To notify a depositor of all increases to the depositor's account
B) To notify a depositor of a deduction from a depositor's account
C) To notify a depositor of an NSF cheque
D) To notify a depositor of an EFT
E) To notify a depositor of a deduction from a depositor's account and to notify a depositor of an NSF cheque

Question

Quizplus · Accepted Answer

A debit memorandum is issued by a bank to notify a depositor of deductions from their account, which can include deductions for various reasons such as NSF (Non-Sufficient Funds) cheques. This means both parts of option E are correct.

A Bank Issues a Debit Memorandum