what does it mean for money to be deposited into a bank account

Subject : Business

Question: In a financial context, what does it mean for money to be deposited into a bank account?

A) The money is removed from the account and transferred to another account.

B) The money is placed into the account, increasing the account balance.

C) The money is physically stored in a safe deposit box within the bank.

D) The money is converted into another currency and stored outside the bank.

Expert Verified Solution:

The correct answer is:

B) The money is placed into the account, increasing the account balance.

Explanation:

When money is deposited into a bank account, it means that the funds are added to the account, which increases the account balance. This can be done through various methods such as direct deposit, cash deposits, or electronic transfers.

In contrast:

A) The money is removed from the account and transferred to another account describes a withdrawal or transfer, not a deposit.

C) The money is physically stored in a safe deposit box within the bank refers to the storage of physical valuables, not account deposits.

D) The money is converted into another currency and stored outside the bank involves currency conversion and storage outside the banking system, which is not related to the process of depositing money into a bank account.