What would cause a bank to increase a depositor’s account?

1.  collecting a note receivable
2.  paying a note payable
3.  NSF checks (“non sufficient funds”)
4.  service changes

Correct Answer:

•  paying a note payable

[source] ‘MT: depositor account os a liability to the bank – bank owes the money to depositor. bank collects a notes receivable from client means reducing client’s cash/ deposits. Similar if NSF means the cheque owner does not have enough funds to transfer funds into the client’s deposits, so theres no change in deposits.’