Which option describes Direct Deposit?

• A. A cash withdrawal from an ATM.
• B. A written order to withdraw funds from a bank.
• C. An electronic transfer of your paycheck directly into your checking account.
• D. A service to pay bills online.

Answer: (C)

Direct Deposit is an electronic transfer of funds into your bank account, typically for wages or benefits, rather than a physical check or withdrawal. The option describing an electronic transfer of your paycheck directly into your checking account matches this idea exactly. The other options describe withdrawing cash from an ATM, issuing a written instruction to withdraw funds, or paying bills online—none of which are direct deposit. Direct deposits are convenient because they move funds electronically and are usually available on payday.