What does EFT stand for?

EFT stands for Electronic Funds Transfer. This term is widely used in finance and banking to describe the digital movement of money between accounts and institutions without the need for physical exchange of cash or checks. Electronic Funds Transfer enables efficient processing of transactions such as direct deposits, wire transfers, and automated payments.

Understanding this concept is crucial for various financial operations within military personnel management, as it affects how pay and allowances are disbursed to service members. This method enhances security, reduces processing time, and improves overall cash flow management by allowing for quick and reliable electronic transactions.

The other options, while they may seem plausible, do not accurately represent the standard definition and common usage of EFT in the context of financial transactions. For instance, External Fund Transfer and Emergency Financial Transaction do not reflect established financial terminologies, while Entity Fund Tracking is not a recognized term in financial transactions.