The Automated Clearing House (ACH)
A) arranges for checks to be cleared.
B) serves as an accounting system for credit cards.
C) provides a mechanism for banks to transfer money directly to a firms' suppliers or employees.
D) is a system for making large-value international cash payments.

Question

Quizplus · Accepted Answer

The Automated Clearing House (ACH) provides a mechanism for banks to transfer money directly to a firm's suppliers or employees, commonly used for direct deposit of paychecks or paying vendors. It does not arrange for checks to be cleared (A), serve as an accounting system for credit cards (B), or facilitate large-value international cash payments (D).