EFT is defined as

EFT is defined as

• A. Electronic Funds Transfer
• B. Electronic Financial Transaction
• C. External Fund Transfer
• D. Electronic Fund Transfer

Answer: (A)

The term EFT refers to the electronic movement of money, so the best choice is Electronic Funds Transfer. In banking, EFT describes transferring funds electronically between accounts or institutions, rather than handling cash or performing a generic electronic transaction. The plural “funds” is the conventional wording because it emphasizes moving money as a balance from one place to another. The other options alter the meaning by using Financial instead of Funds, External instead of Funds, or the singular Fund, which isn’t the standard term used. So Electronic Funds Transfer is the standard, widely used definition.

The term EFT refers to the electronic movement of money, so the best choice is Electronic Funds Transfer. In banking, EFT describes transferring funds electronically between accounts or institutions, rather than handling cash or performing a generic electronic transaction. The plural “funds” is the conventional wording because it emphasizes moving money as a balance from one place to another. The other options alter the meaning by using Financial instead of Funds, External instead of Funds, or the singular Fund, which isn’t the standard term used. So Electronic Funds Transfer is the standard, widely used definition.