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AssignmentMultiple Choice

Understanding Checking and Debit Accounts

Question 2 • Personal Finance - EL3403

Which best describes an Electronic Funds Transfer?

Answer
A
a direct deposit into an account
B
a loan advance from a bank to an individual
C
a payment that can only occur via debit card
D
a transaction exclusively for international transfers

Explanation

An Electronic Funds Transfer (EFT) moves money electronically between accounts, without using paper checks or cash. A direct deposit is a common example because an employer sends wages electronically into an employee’s account. EFTs can also include other kinds of electronic payments, so they are not limited to debit cards or international transfers.

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