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