What is the primary function of Electronic Fund Transfers (EFT)?
To process cheques using OCR technology
To physically move cash between banks
To send instructions to a bank's computer system for transferring money
To allow customers to withdraw cash from ATMs
Which of the following is a common application of EFT in businesses?
Paying employees' salaries directly into their bank accounts
Paying suppliers in cash
Issuing physical cheques to employees
Transferring money between different currencies
How does EFT differ from traditional cash transactions?
EFT does not involve the physical movement of cash
EFT involves the physical movement of cash
EFT is only used for international transactions
EFT requires a bank visit for each transaction
What is a disadvantage of using EFT for transactions?
It allows for instant transactions
It eliminates the need for bank visits
It requires internet access
It is more secure than cash transactions
Which of the following statements about EFT security is true?
EFT systems use strong encryption for secure transactions
EFT does not require any security measures
EFT is vulnerable to hacking
EFT transactions are not encrypted
How do ATMs enhance the use of EFT in banking?
By enabling various banking services including deposits and withdrawals
By allowing cash withdrawals only
By providing a physical location for cash transactions
By processing cheques directly
What do customers need to identify themselves at ATMs?
A cheque and a social security number
A passport and a fingerprint
A bank statement and a driver's license
A bank card and a secret PIN
What technology is used by banks to streamline the processing of cheques?
Magnetic Ink Character Recognition (MICR)
Optical Character Recognition (OCR)
Electronic Fund Transfer (EFT)
Blockchain technology
What is one advantage of using MICR technology over OCR for cheque processing?
Higher error rate
Lower error rate
Requires less technology
Faster processing time
What information do banks typically read from cheques?
Only the amount
Bank code, account number, and cheque number
The date and the bank's address
Only the payee's name
