What type of transactions typically reduce your account balance?

Debit transactions are those that directly reduce your account balance. This includes actions such as writing checks or making cash withdrawals from your account. When these transactions occur, the funds are taken from your account, leading to a decrease in the overall balance.

In contrast, credit transactions, such as deposits and transfers, increase your account balance. Investment transactions for purchases, like stocks, may involve spending money from your account, but they represent a different category of activity focused on asset acquisition rather than direct account balance reduction. Lastly, loan transactions that increase your credit limit can enable access to more funds but do not impact your account balance as they are related to borrowing, not directly taking money from your available funds. Thus, the understanding of which transactions reduce your account balance distinctly points to debit transactions like checks and withdrawals.