What is an Electronic Funds Transfer? - Definition, Process & Benefits


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What is an electronic funds transfer?

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1. Which is a benefit of electronic funds transfer?

2. How much time does it take for an electronic funds transfer to process?

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About This Quiz & Worksheet

In this interactive and fully downloadable quiz/worksheet combo students will test their knowledge of Electronic Funds Transfers. You will be quizzed on the definition of an EFT, the benefits of EFTs over older methods of funds transfers, and common types of EFTs.

Quiz & Worksheet Goals

In this assessment you'll be tested on:

  • The definition of an Electronic Funds Transfer
  • The benefits of EFTs over manual payment methods
  • Misconceptions about EFTs
  • What an EFT is not

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related lesson on Electronic Funds Transfers, what they are and how they can benefit merchants and consumers
  • Defining key concepts - ensure that you can accurately define main phrases, such as Electronic Funds Transfer, online bill paying, direct deposit and direct debit
  • Distinguishing differences - compare and contrast topics from the lesson, such as direct deposit and direct debit
  • Knowledge application - use your knowledge to answer questions about the types of Electronic Funds Transfers and their uses

Additional Learning

To learn more about Electronic Funds Transfers, review the accompanying lesson on What is an Electronic Funds Transfer - Definition, Process, and Benefits. This lesson covers the following objectives:

  • A demonstration of EFTs in action
  • An explanation of how various types of EFTs are processed
  • A comparison of the EFT process versus earlier manual transactions
  • A summary of the the benefits of EFTs to both consumers and merchants