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