A business keeps cash in a bank account because banks have established practices for safeguarding the business's money.

Question

Quizplus · Accepted Answer

Banks have established practices for safeguarding their customers' money, which is why businesses keep their cash in a bank account. Banks offer security measures such as FDIC insurance, fraud detection systems, and physical security measures to protect customers' funds. Additionally, by keeping their cash in a bank account, businesses can also earn interest on their deposits.

A Business Keeps Cash in a Bank Account Because Banks