Question

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

A. It facilitates manual cash transactions.
B. It enables electronic movement of funds.
C. It exclusively uses paper checks.
D. It relies on physical currency exchange.

Answer 1

An electronic funds transfer system (EFTS) enables the electronic movement of funds between accounts, transforming the traditional transaction methods.

Step-by-step explanation:

The statement that applies to an electronic funds transfer system (EFTS) is 'B. It enables electronic movement of funds.' An EFTS is a mechanism used by banks and financial institutions to facilitate the electronic transfer of money between accounts, either within a single financial institution or across multiple institutions. This system has revolutionized the way transactions are conducted, moving away from manual cash transactions, the use of physical currency, and reliance on paper checks.