Question 1

Which of the following is an instrument whereby one party orders the second party to pay an amount of money to the party listed on the instrument?

Accepted Answer

A)   A draft.
B)   A note.
C)   A mark.
D)   An instrument.
E)   A certificate of deposit.F) A) and D)
G) C) and E)

Question 2

An oral stop payment order is valid for _________ unless the order is later confirmed in writing.

Accepted Answer

A)   10 Days
B)   14 Days
C)   30 Days
D)   45 Days
E)   90 DaysF) A) and B)
G) C) and E)

Question 3

Which of the following governs consumer fund transactions in electronic fund transfers?

Accepted Answer

A)   The Electronic Fund Transfer Act of 1978.
B)   The Automated Transfer Act of 1990.
C)   The Electronic Banking Act of 2000.
D)   The Automated Fund Transfer Regulation of 2002.
E)   The Uniform Money Services Business Act of 1990.F) None of the above
G) A) and B)

Question 4

Which of the following is a bank receiving a transferred check during a collection process excluding the first bank and the last bank?

Accepted Answer

A)   Depositary.
B)   Acknowledging.
C)   Collecting.
D)   Intermediary.
E)   Transferring.F) All of the above
G) B) and D)

Question 5

Unlike in the United States,in India money orders may be issued only by the post office.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true regarding Trevor's statement that once the check had been dishonored,it could not be presented again?

Accepted Answer

A)   He was correct.
B)   The holder can attempt to resubmit the check at a later date.
C)   The holder may attempt to resubmit the check at a later date only if all endorsers of the check have been notified of the dishonor.
D)   The holder may resubmit the check only if notice is given to the drawer.
E)   The check may be presented again for payment only if notice has been given both to endorsers and the drawer.F) A) and E)
G) B) and D)

Question 7

According to the UCC,a check is a special kind of draft.

Accepted Answer

A) True 
 B)False

Question 8

Assuming a proper and timely claim is made,which of the following is true regarding the UCC's allowance of full recovery in the event that certain types of checks are lost,stolen,or destroyed?

Accepted Answer

A)   The UCC allows for full recovery if a cashier's check is lost, stolen, or destroyed; but full recovery is not allowed if a teller's check or certified check is lost, stolen, or destroyed.
B)   The UCC allows for full recovery if a cashier's check or certified check is lost, stolen, or destroyed; but full recovery is not allowed if a teller's check is lost, stolen, or destroyed.
C)   The UCC allows for full recovery if a cashier's, certified, or teller's check is lost, stolen, or destroyed.
D)   The UCC allows for full recovery if a cashier's check is lost, stolen, or destroyed; but in regard to a teller's check or certified check, full recovery is only allowed if the instrument is lost or stolen, not if it is destroyed.
E)   Because individuals are expected to properly safeguard checks, the UCC does not allow for recovery if a cashier's, teller's, or certified check is lost, stolen, or destroyed.F) C) and E)
G) B) and C)

Question 9

Which of the following governs the transfer of checks between banks?

Accepted Answer

A)   Article 1 of the UCC.
B)   Article 2 of the UCC.
C)   Article 3 of the UCC.
D)   Article 4 of the UCC.
E)   Article 5 of the UCC.F) B) and E)
G) A) and E)

Question 10

If a customer makes a deposit over ____,the depositary bank may place an 8-day hold on the funds.

Accepted Answer

A)   $1,000
B)   $2,000
C)   $3,000
D)   $4,000
E)   $5,000F) A) and E)
G) A) and B)

Question 11

A bank may determine that _____ or later is the cutoff hour for handling checks.

Accepted Answer

A)   Noon
B)   1:00 p.m
C)   2:00 p.m
D)   3:00 p.m
E)   4:00 p.mF) B) and C)
G) B) and E)

Question 12

Which of the following is the period between the time a check is written and the time it is presented for final payment,during which time a customer can still use his or her funds?

Accepted Answer

A)   Transfer time.
B)   Electronic time.
C)   Chargeable time.
D)   Float time.
E)   Usable time.F) B) and C)
G) A) and E)

Question 13

Which of the following is true regarding the bank manager's statement that the bank was a holder in due course,and that stop-payment orders could not affect the right of a holder in due course to collect?

Accepted Answer

A)   The bank manager is wrong.
B)   The bank manager is correct only if he can establish that the bank employee who actually paid the check had no knowledge of the stop-payment order.
C)   The bank manager is correct unless Elaine can affirmatively prove that the bank employee who actually paid the check had knowledge of the stop-payment order.
D)   The bank manager is correct unless Elaine can prove fraud in the factum on the part of BIG Jewelry.
E)   The bank manager is correct unless Elaine can prove fraud in the factum on the part of BIG Jewelry and that the bank was aware of the fraud.F) A) and E)
G) A) and D)

Question 14

A written stop-payment order is valid for only 30 days.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true regarding whether Harold will have to bear the loss on the later forgeries,other than the first one,by Susie?

Accepted Answer

A)   Harold will not likely have to bear the loss because there was no delay in bank notification.
B)   Harold will not have to bear the loss because forgeries were involved.
C)   Harold will not have to bear the loss because the forgeries were by an employee; otherwise, he would have had to bear the loss.
D)   Harold will have to bear the loss because the checks were cashed before he notified the bank.
E)   Harold will have to bear the loss because he did not notify the bank about the first forgery by Susie within 30 days.F) A) and E)
G) A) and B)

Question 16

A[n] ______ check is a check that is accepted at the bank at which it is drawn.

Accepted Answer

A)   Cashier's
B)   Certified
C)   Acknowledged
D)   Transferred
E)   DraweeF) B) and E)
G) A) and D)

Question 17

Which of the following is correct regarding whether the bank will legally have to accept responsibility for the check presented by Renee?

Accepted Answer

A)   The bank has no responsibility to repay Harold on the basis that because Renee was an employee, the check was not considered forged.
B)   The bank will be required to repay Harold because the check was forged.
C)   Harold will have to bear the loss because the check was paid before the bank had notice of the forgery.
D)   Harold will not have to bear the loss because the forgeries were by an employee; otherwise, he would have had to bear the loss.
E)   The bank will likely not be required to repay Harold because Harold's negligence in leaving the rubber stamp with his signature readily available likely substantially contributed to the forged signature.F) All of the above
G) B) and D)

Question 18

Under the ____,a bank has a duty to pay checks from a customer's account so long as the check is properly payable.

Accepted Answer

A)   Account rule
B)   Properly payable rule
C)   Payability in fact regulation
D)   Check pay rule
E)   There is no such rule.F) A) and D)
G) C) and D)

Question 19

Assuming the bank is not negligent,in the case of multiple forgeries by the same wrongdoer,what is the effect of a customer's failure to ever notify the bank of the first forgery in regard to subsequent forgeries?

Accepted Answer

A)   There is no effect because each forgery stands on its own.
B)   The customer is barred from recovering on the subsequent forgeries.
C)   The customer may recover on a subsequent forgery if it is reported to the bank within 5 days after the statement showing the subsequent forgery is received by the customer.
D)   The customer may recover on a subsequent forgery if it is reported to the bank within 10 days after the statement showing the subsequent forgery is received by the customer.
E)   The customer may recover on a subsequent forgery if it is reported to the bank within 15 days after the statement showing the subsequent forgery is received by the customer.F) B) and E)
G) C) and D)

Question 20

The customer cannot order a stop payment on an electronic fund transfer.

Accepted Answer

A) True 
 B)False

Exam 29: Checks and Electronic Fund Transfers

A[n] ______ check is a check that is accepted at the bank at which it is drawn.

Correct AnswerverifiedShow Answer

Which of the following governs consumer fund transactions in electronic fund transfers?

Correct AnswerverifiedShow Answer

Which of the following is correct regarding whether the bank will legally have to accept responsibility for the check presented by Renee?

Correct AnswerverifiedShow Answer

Assuming the bank is not negligent,in the case of multiple forgeries by the same wrongdoer,what is the effect of a customer's failure to ever notify the bank of the first forgery in regard to subsequent forgeries?

Correct AnswerverifiedShow Answer

Which of the following is a bank receiving a transferred check during a collection process excluding the first bank and the last bank?

Correct AnswerverifiedShow Answer

An oral stop payment order is valid for _________ unless the order is later confirmed in writing.

Correct AnswerverifiedShow Answer

If a customer makes a deposit over ____,the depositary bank may place an 8-day hold on the funds.

Correct AnswerverifiedShow Answer

A written stop-payment order is valid for only 30 days.

Correct AnswerverifiedShow Answer

Assuming a proper and timely claim is made,which of the following is true regarding the UCC's allowance of full recovery in the event that certain types of checks are lost,stolen,or destroyed?

Correct AnswerverifiedShow Answer

Which of the following is an instrument whereby one party orders the second party to pay an amount of money to the party listed on the instrument?

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether Harold will have to bear the loss on the later forgeries,other than the first one,by Susie?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the bank manager's statement that the bank was a holder in due course,and that stop-payment orders could not affect the right of a holder in due course to collect?

Correct AnswerverifiedShow Answer

Which of the following is true regarding Trevor's statement that once the check had been dishonored,it could not be presented again?

Correct AnswerverifiedShow Answer

Under the ____,a bank has a duty to pay checks from a customer's account so long as the check is properly payable.

Correct AnswerverifiedShow Answer

According to the UCC,a check is a special kind of draft.

Correct AnswerverifiedShow Answer

The customer cannot order a stop payment on an electronic fund transfer.

Correct AnswerverifiedShow Answer

Which of the following governs the transfer of checks between banks?

Correct AnswerverifiedShow Answer

A bank may determine that _____ or later is the cutoff hour for handling checks.

Correct AnswerverifiedShow Answer

Unlike in the United States,in India money orders may be issued only by the post office.

Correct AnswerverifiedShow Answer

Which of the following is the period between the time a check is written and the time it is presented for final payment,during which time a customer can still use his or her funds?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified