Which of the following transactions will reduce your checking account balance immediately?

• A. Withdrawing cash from an ATM
• B. Depositing a customer’s check
• C. Receiving a bank loan
• D. Writing a check to pay a supplier

Answer: (A)

Verified step by step guidance

1. Understand the nature of each transaction and its impact on the checking account balance.
2. Analyze the transaction 'Withdrawing cash from an ATM': This action directly reduces the checking account balance because cash is taken out immediately.
3. Evaluate the transaction 'Depositing a customer’s check': This does not reduce the checking account balance immediately. Instead, it increases the balance once the check clears, which may take time.
4. Consider the transaction 'Receiving a bank loan': This increases the checking account balance as funds are deposited into the account, not reducing it.
5. Examine the transaction 'Writing a check to pay a supplier': While this action authorizes payment, the checking account balance is not reduced immediately until the check is processed by the bank.