Which statement describes the difference between ACH transfers and wire transfers?

• A. ACH transfers are typically slower and batch-processed; wire transfers are faster and often more immediate.
• B. ACH transfers are always international; wire transfers are domestic only.
• C. Wire transfers do not require bank clearance; ACH transfers require credit checks.
• D. Both are the same in speed and cost.

Answer: (A)

The main idea being tested is how the two transfer methods differ in speed and processing. ACH transfers are processed in batches by the Automated Clearing House network, so they’re slower and settle over one or more business days (though same-day ACH is available in many cases). Wire transfers are handled individually through faster networks like Fedwire, CHIPS, or international equivalents, so they tend to settle much quicker—often within minutes to a few hours—albeit usually with higher fees. This contrast makes the statement describing ACH as slower and batch-processed and wire as faster and more immediate the best fit. Other descriptions aren’t correct: ACH isn’t exclusively international, wires aren’t completely without clearance, and the two aren’t the same in speed or cost.