The funds transfer system used by the Federal Reserve that handles transfers for federal funds, interbank dealings, and securities transactions is called

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Monex.
B	Clearinghouse Interbank Payment System (CHIPS).
C	Electronic Payment Presentment System (EPPS).
D	Fedwire.

Explanation:

Detailed explanation-1: -The Fedwire Funds Service is the premier electronic funds-transfer service that banks, businesses and government agencies rely on for mission-critical, same-day transactions. Fedwire Funds Service participants benefit from the finality of payments credited to their Federal Reserve Bank master accounts.

Detailed explanation-2: -The Fedwire Funds Service is an RTGS system owned and operated by the Reserve Banks that enables participants to make final payments in central bank money. The Fedwire Funds Service consists of a set of computer applications that route and settle payment orders.

Detailed explanation-3: -44 For example, Fedwire and CHIPS involve both the transmission of instruction messages and the settlement between institutions. SWIFT, on the other hand, does not effect the actual movement of any funds, but consists entirely of instructions for transfers that the institutions must complete by other means.

Detailed explanation-4: -Fedwire® is an electronic funds transfer system operated by the twelve U.S. Federal Reserve Banks. It is used by U.S. banks, credit unions, and government agencies, as well as the Federal Reserve Banks themselves, for same-day funds transfers, otherwise known as wire transfers.

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