Future Business Leaders of America (FBLA) Agribusiness Practice Test

What is the main feature of direct deposit?

1. Paychecks are physically mailed to employees

2. Paychecks are automatically deposited into an employee's account

3. Paychecks are delivered in cash

4. Paychecks are compensated by gift cards

The correct answer is: Paychecks are automatically deposited into an employee's account

The main feature of direct deposit is that paychecks are automatically deposited into an employee's bank account. This method offers convenience and efficiency for both employees and employers. Employees do not have to worry about physical checks, which can be lost or stolen. Instead, their earnings are safely transferred to their bank accounts on payday. This automation also streamlines payroll processes for businesses, reducing administrative tasks associated with issuing paper checks. Moreover, direct deposit often allows for quicker access to funds, as employees can access their money immediately without having to go to a bank or an ATM. This system has become the standard for many organizations across various industries, promoting ease of use and financial security for employees.