Final answer:
The federal Electronic Funds Transfer Act governs consumer rights and liabilities for electronic fund transfers.
Step-by-step explanation:
The correct answer is C) It governs consumer rights and liabilities for electronic fund transfers.
The federal Electronic Funds Transfer Act, also known as Regulation E, is a federal law that governs electronic fund transfers (EFTs) made by consumers. It provides various protections and imposes certain obligations on financial institutions and consumers when it comes to electronic fund transfers.
For example, the Act requires financial institutions to provide consumers with disclosures about their EFT services, including information about fees, dispute resolution procedures, and consumer liability for unauthorized transactions. It also establishes certain consumer rights, such as the right to receive documentation of EFT transactions and the right to stop payment on preauthorized transfers.