What type of transfer does Electronic Funds Transfer refer to?

Electronic Funds Transfer (EFT) refers to the electronic movement of money between accounts. This can include a wide range of transactions such as direct deposits of payroll, transfers between bank accounts, payments made online, and withdrawals from ATMs.

EFT is a convenient alternative to traditional paper checks and cash transactions, allowing for quicker and more efficient handling of money without the need for physical currency. The technology behind EFT ensures that transactions are processed digitally, often in real-time, which enhances speed and security.

The other options do not accurately capture the essence of what EFT encompasses. For example, limiting it to tax-related transactions ignores its broader applicability to everyday banking and financial processes. Cash transactions in physical locations do not make use of electronic methods, and investment transactions are just one of many forms that EFT can take. Thus, identifying EFT as the electronic movement of money encompasses its full range of applications.