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