Which of the following is true of EFT?
A) It cost more than receiving cash payments through the mail.
B) It can process certain cash transactions at less cost than by using the mail.
C) It is easy to document purchase and sale transactions.
D) It means Effective Funds Transfer.

Question

Quizplus · Accepted Answer

EFT can process certain cash transactions (such as payroll and vendor payments) at less cost than by using the mail, making it a more cost-effective option. Option A is incorrect as EFT is typically less expensive than using traditional mail methods. Option C is partially true as EFT does make it easy to document transactions electronically, but this is not unique to EFT, as other payment methods also have electronic records. Option D is incorrect as EFT stands for Electronic Funds Transfer, not Effective Funds Transfer.

Which of the Following Is True of EFT