Which of the Following Statements BEST Describes How the Automated

question 101

Multiple Choice

Which of the following statements BEST describes how the Automated Clearing House Network (ACH) maintains its integrity as a processor of electronic payments?

• A) The ACH network is an institution within the Federal Bank System and is regulated by strict government standards.
• B) The ACH network is a for-profit company and is regulated by its need to make a profit, which it can only do by strictly regulating itself.
• C) The ACH network is a financial institution and is thus regulated by its obligations to its investors.
• D) The ACH network is a not-for-profit association and is regulated by its independence from outside interests.
• E) The ACH network is a professional organization to which all financial institutions are obligated to contribute resources and is regulated by the interests of these institutions.

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Definitions:

Decision Alternatives

Possible actions or choices available to decision-makers in a decision-making process.

Opportunity Loss

The loss of potential gain from other alternatives when one alternative is chosen.

Decision Maker's Profit

Reflects the gains realized by a decision maker after considering all costs and revenues associated with their decision.

Expected Monetary Value(EMV)

A financial concept used in decision-making to calculate the average outcome of future events, taking into account the probabilities and impacts of various possible outcomes.