What type of transactions does EFT typically involve?

The correct answer indicates that Electronic Funds Transfer (EFT) typically involves transfers initiated through electronic means. This definition encompasses a wide range of transactions, including direct deposits, wire transfers, automatic bill payments, and online payments. EFT is fundamentally about the electronic exchange of money, which provides efficiency and speed compared to traditional methods.

EFT allows consumers and businesses to conduct financial transactions without the need for physical cash or paper-based documentation, making it a cornerstone of modern banking and payment processing. It streamlines how payments are made and received, contributing to the convenience and reliability of financial transactions in today's digital economy.