Answer (A) is correct. An ACH electronic funds transfer (EFT is an electronic payment to a company’s account at a concentration bank. A concentration bank is a large bank to which a company transfers funds from local depository banks. These local banks operate the company’s lockboxes and thus serve as collection points. The transfer of funds to the concentration bank allows the company to take advantage of economies of scale in cash management. The use of ACHs facilitates concentration banking. ACHs are electronic networks operated by the Federal Reserve (except for the New York regional ACH association) that guarantee 1-day clearing.