How would you reconcile your bank account to avoid spending more than you have?
A. Contact your financial institution to read your transactions for the past month.
B. Compare your own records of your spending with your financial institutions’ records.
C. Review your bank statement once at the end of the month.
D. None of the above.
How would you reconcile your bank account to avoid spending more than you have?
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The best answer is B. Compare your own records of your spending with your financial institution’s records.
Explanation: Reconciling your bank account involves checking your own recorded transactions against those listed by your bank. By comparing both records, you can identify discrepancies, track your spending accurately, and ensure you don’t overspend. This process helps you maintain control over your finances and avoid unintentional overdrafts. Checking your bank statement regularly (as mentioned in option C) is important, but the comparison with your own records is key for effective reconciliation.