Electronic funds transfers are beneficial to banks because they eliminate the float time that a drawer enjoys on a checking account and the paperwork involved in processing checks.

Question

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Electronic funds transfers (EFT) allow banks to move money quickly and electronically without the need for physical checks. This process eliminates the delay (float time) between when a check is written and when it is cleared, and reduces the paperwork and processing costs associated with handling checks.

Electronic Funds Transfers Are Beneficial to Banks Because They Eliminate