Question

An entity that processes checks and electronic fund transfers for banks and other financial organizations is called a _____.

Answer 1

A payment system is the entity that processes checks and electronic fund transfers, enabling efficient financial transactions for banks and other financial organizations.

Step-by-step explanation:

An entity that processes checks and electronic fund transfers for banks and other financial organizations is called a payment system. This system is pivotal for an economy as it allows for the efficient exchange of goods, services, and financial assets without the impracticalities and risks associated with handling large amounts of cash. It also serves as a financial intermediary, bringing savers and borrowers together, lowering transaction costs, and contributing to the creation of money.