Which of the Following Statements Best Describes How the Automated

question 59

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:

Self-Serving Bias

The common tendency to attribute our successes to personal characteristics and our failures to external factors.

Total Egocentrism

A cognitive state where an individual is unable to differentiate between their own perspective and that of others, typically seen in early childhood development.

Types of Memory

The various forms in which the human brain can store information, typically classified as sensory, short-term (or working), and long-term memory.

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.