Electronic Funds Transfer System (EFTS)
The official banking term for computer money transferring is the electronic funds transfer system, or EFTS. There are basically three parts to an EFT system ： teller machines, point-of- sale systems, and automated clearinghouses.
Teller machines. Recent EFTS developments have involved teller machines. They are also called customer bank communication terminals or remote service units. They are located either on the bank's premises or in stores such as supermarkets or drugstores. Automated teller machines receive deposits, dispense funds from checking or savings accounts.make cash advances on credit card accounts, and receive payment. The device is connected online to the bank’s computers.
Point-of-Sale systems. Such systems allow the consumer transfer founds to merchants in order to make purchases. Online terminals are located at check-out in the merchant's store. When the customer make a purchase.His or her card is inserted into the terminal, which reads the data. encoded on it. The computer at the customer's bank verifies that the card and identification code are valid and that there is enough money in the customer's account. The customer's account is instantaneously debited, and the merchant’s account credited, for the amount of the purchase.
Automated clearinghouses. Such clearinghouses are similar to ones in use in which checks are cleared between banks. The main difference is that the entries made are in the form of electronic signals-there are no checks used. Thus, this is not a system for further automating the handling of paper checks. It is a replacement system. Such systems are especially useful for recurrent payments like payroll Social Security, or pension fund plans that are made every week or every month.
Money Still Exists
What does an EFTS and. in particular, a point-of-sale system do to the money supply? The answer is "nothing". In a cashless,checkless society, you would still need a checking account balance (demand deposits) ON which to draw even though you did not physically write a check. You would have to deposit your paychecks into your account (or have it done by your employer) at the beginning of each month, just as you might do now. The basic advantage of a cashless, checkless society is that it is a means of reducing the costs associated with exchange. After all, it is estimated that the banking system spends over $7 billion annually just to process 32 billion checks.
Will the cashless, checkless society make household budgeting more difficult? Not necessarily. Many expenses eachmonth are fixed, such as car and house payments. Payingthem automatically will not alter your spending behavior. Moreover, you would get a statement at the end of each month on your transaction, just as you do now. Since we are all faced with a budget constraint, using EFTS cannot alter the total amount of income that we are able to spend. The total money supply will not be affected by switching to EFTS, either. To say that in the future we will not use money is an incorrect view of any electronic funds transfer system. Money is here to stay.
Which of the following can we say about automated clearinghouses?
A、They are used to improve the efficiency of the handling of paper checks.
B、They are essentially different in operation from clearinghouses used b； banks to clear checks.
C、They are especially useful for occasional payments.
D、They are designed to replace those dealings with paper-check clearing.
【正确答案】：D
【名师解析】:Automated clearinghouses, as described in the passage, are systems that operate differently from traditional clearinghouses that handle paper checks. They do not use checks at all; instead, they process transactions through electronic signals. This means that they are not just an improvement on the efficiency of handling paper checks, but rather a replacement for the entire paper-check clearing process. The passage specifically mentions that these systems are particularly useful for recurrent payments, not occasional ones, which eliminates option C. Option B is incorrect because the passage states that automated clearinghouses are similar to traditional ones, but with the key difference being the use of electronic signals instead of paper checks. Option A is also incorrect because the passage does not suggest that automated clearinghouses are used to improve the handling of paper checks, but rather to replace them. Therefore, the correct answer is D, as automated clearinghouses are designed to replace dealings with paper-check clearing.
