True or false: dealing with a bank

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   A bank charges a small amount called discount for paying a note early.

2. Statement is true

   No

   Statement

   An overdraft never has to be cleared later.

3. Statement is true

   Yes

   Statement

   A bank lends out money that would otherwise sit idle.

4. Statement is true

   Yes

   Statement

   A regular reconciliation discourages embezzlement by the bank's accountant.

Instructions

Decide whether each statement about bank dealings is true or false.

Explanation