An account into which funds are deposited only in an amount equal to the value of the checks presented for payment that day is called a ________ account.

Question

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A zero-balance account is set up to maintain a zero balance at the end of each day. Any funds in excess of the amount needed to cover checks presented for payment are transferred to another account, typically an investment account. The purpose of a zero-balance account is to maximize the use of cash and minimize the costs associated with idle cash.

An Account into Which Funds Are Deposited Only in an Amount