CMAA Practice Exam 2025 – Complete Guide for Exam Prep

The correct answer is electronic funds transfer. This method allows for the movement of money from one bank account to another without the need for physical checks. Electronic funds transfers utilize technology to transmit payment instructions over a secure network, enabling quick and efficient transactions. This system is highly advantageous as it reduces paperwork, minimizes the risk of lost or stolen checks, and facilitates faster access to funds.

While wire transfers and direct deposits also allow for electronic movement of funds, they are specific types of electronic funds transfers. A wire transfer is typically used for sending larger sums and may involve fees, while direct deposit is often associated with payroll deposits. The key characteristic that distinguishes electronic funds transfer in general is its broad applicability to various automated transactions that don't require physical checks, making it the most suitable choice in this context.