Final answer:
In managing cash disbursements, it is essential to pay bills on time to maintain a good credit rating. Banks facilitate these transactions, granting convenience and security through various banking tools. Credit cards act as short-term loans, and regular account management helps avoid fees and overdrafts.
Step-by-step explanation:
To maintain a good credit rating and optimize cash management, cash disbursements should arrive at the vendor's place of business just in time for the payment due dates. Your credit rating can be improved by paying all your bills on time, and by carefully managing your credit usage to avoid utilizing too much of the credit available to you. Banks play an integral role in this process since they facilitate secure and convenient transactions that don't require carrying large sums of cash. This is accomplished through the use of services like direct withdrawals, writing checks, or using a debit card connected to either a checking account or savings account. Furthermore, using a credit card translates to a short-term loan, as the money is transferred from the credit card company's account to the seller, and the user owes this amount back to the credit card company at month's end.