What is the primary purpose of a 'bank statement'?

What is the primary purpose of a 'bank statement'?

• A. A summary of an account holder’s transactions
• B. A document detailing loan agreements
• C. A notice of account inactivity
• D. A record of investment portfolio performance

Answer: (A)

The primary purpose of a bank statement is to provide a summary of an account holder's transactions over a specific period, typically monthly. This document details all activity within the account, including deposits, withdrawals, and any fees incurred. It serves as a comprehensive record that allows customers to track their financial activity, assess their spending patterns, and reconcile their accounts. In addition to summarizing transactions, bank statements often include important account information, such as the current balance and account number, making it an essential tool for personal financial management. The other options, while related to banking, do not reflect the core function of a bank statement. Loan agreements, notices of inactivity, and investment portfolio performance records serve different purposes and are not encapsulated within the concept of a bank statement.

The primary purpose of a bank statement is to provide a summary of an account holder's transactions over a specific period, typically monthly. This document details all activity within the account, including deposits, withdrawals, and any fees incurred. It serves as a comprehensive record that allows customers to track their financial activity, assess their spending patterns, and reconcile their accounts.

In addition to summarizing transactions, bank statements often include important account information, such as the current balance and account number, making it an essential tool for personal financial management. The other options, while related to banking, do not reflect the core function of a bank statement. Loan agreements, notices of inactivity, and investment portfolio performance records serve different purposes and are not encapsulated within the concept of a bank statement.