#1
What does EFT stand for in the context of financial transactions?
Electronic Fund Transfer
Easy Financial Transaction
Economic Fund Transfer
Electronic Finance Tracking
#2
In EFT, what is the purpose of a 'routing number'?
To identify the financial institution
To specify the transaction amount
To encrypt the transaction details
To authenticate the user
#3
Which technology is commonly used for secure communication in EFT transactions?
#4
What is the primary function of a 'token' in EFT security?
Physical device used for transaction verification
Cryptocurrency unit
Bank account identifier
Transaction receipt
#5
What is a 'pre-authorized debit' in the context of EFT?
A manual check issued by the account holder
An electronic debit initiated by the payee with the account holder's consent
A credit card payment
An automatic transfer of funds between two bank accounts
#6
Which of the following is NOT a common type of Electronic Funds Transfer (EFT)?
ACH (Automated Clearing House)
RTGS (Real-Time Gross Settlement)
SWIFT (Society for Worldwide Interbank Financial Telecommunication)
ATM (Automated Teller Machine)
#7
What consumer right is protected by the Electronic Funds Transfer Act (EFTA) in the United States?
Right to free internet access
Right to timely and accurate disclosures
Right to unlimited overdrafts
Right to skip payments without penalty
#8
Which type of EFT transfer is known for processing transactions in real-time?
ACH
RTGS
SWIFT
Wire Transfer
#9
What is the primary benefit of EFT for consumers?
Instant cash withdrawals
Higher interest rates
Convenience and time savings
Unlimited overdraft protection
#10
What is the maximum amount allowed for a single ACH transaction in the United States?
$1,000
$5,000
$10,000
$25,000
#11
What information is typically required for an EFT transaction?
Social Security Number
Date of Birth
Account Number and Routing Number
Home Address
#12
Which federal agency enforces the Electronic Funds Transfer Act (EFTA) in the United States?
Federal Reserve System
Consumer Financial Protection Bureau (CFPB)
Securities and Exchange Commission (SEC)
Internal Revenue Service (IRS)
#13
What is the purpose of a digital signature in the context of secure electronic funds transfers?
To encrypt the transaction details
To verify the authenticity of the sender
To generate a receipt for the transaction
To connect to a secure server
#14
Which of the following statements is true regarding the liability of consumers for unauthorized EFT transactions?
Consumers are always liable for all unauthorized transactions.
Consumers are liable only for transactions that occur during business hours.
Consumers have limited liability if they report unauthorized transactions promptly.
Consumers are never liable for unauthorized transactions.
#15
What role does the Federal Reserve play in the EFT system?
Setting interest rates for EFT transactions
Regulating the security of EFT transactions
Processing and clearing EFT transactions
Providing insurance for EFT transactions
#16
Which law governs international EFT transactions and sets standards for cross-border payments?
Dodd-Frank Act
Basel III
UNCITRAL Model Law on Electronic Transferable Records
Sarbanes-Oxley Act
#17
What is the purpose of the Electronic Payments Association (NACHA) in the context of EFT in the United States?
Regulating cryptocurrency transactions
Setting interest rates for EFT transactions
Developing rules and standards for ACH transactions
Providing insurance for EFT transactions