Question

Which of the following statements applies to an electronic funds transfer system (EFTS)?

a) It is a manual process for transferring funds between banks.
b) It is a paper-based system for financial transactions.
c) It involves the electronic exchange of money between financial institutions.
d) It is a system for tracking physical currency movements.

Answer 1

The correct statement for an EFTS is that it involves the electronic exchange of money between financial institutions, contributing to efficient and invisible financial transactions in the modern economy.

Step-by-step explanation:

The correct statement for an EFTS is that it involves the electronic exchange of money between financial institutions, contributing to efficient and invisible financial transactions in the modern economy. Regarding the question, Which of the following statements applies to an electronic funds transfer system (EFTS)? the correct option is c) It involves the electronic exchange of money between financial institutions.

This system is integral to the payment system in the modern economy, allowing for the invisible yet vital transfer of financial capital between bank accounts without the need for physical cash movements. It helps lower transaction costs and facilitates efficient economic exchanges.