The System That Allows Money to Be Transferred Between Banks

question 61

Multiple Choice

The system that allows money to be transferred between banks electronically without the exchange of paper currency is ____.

• A) electronic data interchange (EDI)
• B) Internet banking (IB)
• C) electronic funds transfer (EFT)
• D) virtual private banking (VPB)

---

Definitions:

Internal Control

Mechanisms and steps a firm takes to confirm the trustworthiness of its financial and accounting reports, enhance accountability, and stop fraudulence.

Controls

Procedures or policies implemented by a company to safeguard its assets, enhance the reliability of its accounting records, increase efficiency, and ensure compliance with laws and regulations.

NSF Check

a check that has been returned by a bank because the account it was drawn on does not have sufficient funds.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented in a bank statement to find discrepancies.