What defines cash management in banking?

Cash management in banking primarily refers to the efficient collection, handling, and use of cash by an organization. It encompasses a variety of activities aimed at optimizing cash flow and ensuring that sufficient cash is available for operational needs. The correct option highlights the core functions involved in this process, namely managing deposits and investments of cash and checks.

This management function includes activities such as monitoring and forecasting cash flow, optimizing the use of available cash, and ensuring that funds are readily available when required. By efficiently managing deposits and investments, banks can maximize returns on idle cash and provide better services to their customers, which is essential for effective financial management.

The other choices, while related to banking, do not encapsulate the concept of cash management as directly. Analyzing customer feedback is important for improving services but does not pertain to cash management specifically. Providing loans is a critical banking function but focuses on credit rather than cash handling. Administering payment processing systems supports cash flow but does not fully represent the broader scope of cash management, which includes a comprehensive approach to handling deposits and investments.