Question 1

Article 2 of the Uniform Commercial Code (UCC) governs bank deposits and collections.

Accepted Answer

A) True 
 B)False

Question 2

When a bank receives a properly drawn and payable check and there are sufficient funds to cover the check, if the bank wrongfully dishonors the check, the bank _____.

Accepted Answer

A)   is liable to the drawer even if the depositor had ordered to stop payment
B)   may be liable to the drawer only if the depositor's credit rating had been injured
C)   is not liable for any damages to the drawer unless the bank dishonored the check intentionally, knowing it to be properly drawn and payable
D)   is liable for actual and consequential damages suffered by the drawerE) A) and B)
F) B) and C)

Question 3

Under the Electronic Fund Transfer Act (EFTA), the operators of electronic fund transfer (EFT) systems are given a maximum of thirty (30) calendar days to investigate errors or provisionally recredit the customer's account.

Accepted Answer

A) True 
 B)False

Question 4

If a drawer is negligent and contributes to the forgery or alteration of a check, the _____.

Accepted Answer

A)   bank can charge the drawer for the amount
B)   bank is liable to the drawer for the amount
C)   check is not payable from the customer's account
D)   bank must pay the instrument out of its own fundsE) A) and D)
F) None of the above

Question 5

The time requirements for notice of postdated checks are similar to those required for:

Accepted Answer

A)   automatic transfers.
B)   stop-payment orders.
C)   drawer-depositor accounts.
D)   stale checks.E) C) and D)
F) B) and C)

Question 6

When the depositor deposits a check to a checking account, the bank becomes his agent for collection of the check.

Accepted Answer

A) True 
 B)False

Question 7

If a drawee bank certifies a check, who among the following is discharged of their liability on the check?

Accepted Answer

A)   The drawer only
B)   The drawee bank and persons who previously indorsed the check
C)   The drawee bank
D)   The drawer and the persons who previously indorsed the checkE) All of the above
F) C) and D)

Question 8

Which of the following statements is true of an oral stop-payment order given by the customer?

Accepted Answer

A)   It is not valid for more than 24 hours.
B)   It is valid for only 14 days unless the customer confirms it in writing during that time.
C)   It is invalid.
D)   It is valid for six months and can be extended for another six months by giving the bank instructions to continue.E) B) and C)
F) B) and D)

Question 9

A check that bears a forged signature of the drawer or payee is nevertheless properly payable from the customer's account.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true of wire transfers?

Accepted Answer

A)   Article 4A of the UCC, which covers wire transfers, includes consumer payments that are covered by the Electronic Funds Transfer Act (EFT
A)  .
B)   International wire transfer systems are known as "Fedwire."
C)   The Federal Reserve operates a domestic wire transfer system that can be made through New York Clearinghouse Payments System (CHIPS) .
D)   Electronic funds transfers between business and financial institutions are generally referred to as wholesale wire transfers.E) None of the above
F) All of the above

Question 11

A check on which a bank is both the drawer and the drawee is known as a certified check.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following best describes a stale check?

Accepted Answer

A)   A check that has been written by the drawer for a date in the future, which a bank can honor even before the date on the check
B)   An incomplete check that is presented to the drawee bank for payment
C)   A check that has been written by the maker dated at some point in the past, which can be paid and charged to the customer's account even at the present date
D)   A check that is more than six months old for which a bank does not owe its customer a duty to pay out of the accountE) A) and B)
F) A) and C)

Question 13

If a bank pays a check after it has received a stop-payment order and has to reimburse its customer for the improperly paid check, it acquires all the rights of its customer against the person to whom it originally made payment, except for rights arising from the transaction on which the check was based.

Accepted Answer

A) True 
 B)False

Question 14

The customer may give an oral stop-payment order to the bank, but it is valid for only fourteen (14) days unless the customer confirms it in writing during that time.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true of the Check 21 Act?

Accepted Answer

A)   The processes it enabled are time-consuming and costly.
B)   It is designed to enable banks to handle more checks electronically.
C)   It completely discourages check truncation.
D)   It requires banks to retain a legible copy of checks for 15 years.E) A) and C)
F) A) and B)

Question 16

Shankar purchased a new car from Friendly Fred's Autos. Fred indorsed the check to Maya for value. Maya presented the check to the bank, and the bank cashed the check. Later, Shankar attempted to place a stop-payment order on the check, because the car he purchased from Fred was defective. Under these circumstances, _____.

Accepted Answer

A)   the bank is liable to Shankar for paying the amount of the check to Maya
B)   Shankar would not be able to have his account recredited
C)   Maya must return the funds to the bank
D)   Shankar can prove that he has sustained a lossE) All of the above
F) B) and D)

Question 17

What are the different electronic funds transfer systems utilized by consumers?

Accepted Answer

The electronic funds transfer (EFT) syst...

Question 18

Revised Article 3 of the Uniform Commercial Code recognizes the modern bank practice of retaining checks, and permits the bank to supply only a statement showing the item number, amount, and date of payment.

Accepted Answer

A) True 
 B)False

Question 19

The bank's signature is not required to create a certified check.

Accepted Answer

A) True 
 B)False

Question 20

According to the revised Article 4 of the Uniform Commercial Code, which of the following statements is true of a postdated check?

Accepted Answer

A)   It is not properly payable by the drawee bank until the date on the check.
B)   A postdated check presented for payment before the date on the check may be paid and charged to the customer's account unless he has given notice of it to the bank.
C)   It is considered to be illegal to present a postdated check to a drawee bank.
D)   A postdated check presented for payment before the date on the check must be returned to the customer and fees charged to his account.E) C) and D)
F) All of the above

Exam 41: Checks and Electronic Fund Transfers

If a drawee bank certifies a check, who among the following is discharged of their liability on the check?

Correct Answer
verified

Which of the following statements is true of an oral stop-payment order given by the customer?

Correct Answer
verified

If a drawer is negligent and contributes to the forgery or alteration of a check, the _____.

Correct Answer
verified

Correct Answer
verified

According to the revised Article 4 of the Uniform Commercial Code, which of the following statements is true of a postdated check?

Correct Answer
verified

A check on which a bank is both the drawer and the drawee is known as a certified check.

Correct Answer
verified

Under the Electronic Fund Transfer Act (EFTA), the operators of electronic fund transfer (EFT) systems are given a maximum of thirty (30) calendar days to investigate errors or provisionally recredit the customer's account.

Correct Answer
verified

When a bank receives a properly drawn and payable check and there are sufficient funds to cover the check, if the bank wrongfully dishonors the check, the bank _____.

Correct Answer
verified

A check that bears a forged signature of the drawer or payee is nevertheless properly payable from the customer's account.

Correct Answer
verified

Which of the following best describes a stale check?

Correct Answer
verified

The customer may give an oral stop-payment order to the bank, but it is valid for only fourteen (14) days unless the customer confirms it in writing during that time.

Correct Answer
verified

Which of the following statements is true of wire transfers?

Correct Answer
verified

Correct Answer
verified

The time requirements for notice of postdated checks are similar to those required for:

Correct Answer
verified

Article 2 of the Uniform Commercial Code (UCC) governs bank deposits and collections.

Correct Answer
verified

Revised Article 3 of the Uniform Commercial Code recognizes the modern bank practice of retaining checks, and permits the bank to supply only a statement showing the item number, amount, and date of payment.

Correct Answer
verified

The bank's signature is not required to create a certified check.

Correct Answer
verified

Which of the following is true of the Check 21 Act?

Correct Answer
verified

What are the different electronic funds transfer systems utilized by consumers?

Correct Answer
verified
The electronic funds transfer (EFT) syst...
View Answer

When the depositor deposits a check to a checking account, the bank becomes his agent for collection of the check.

Correct Answer
verified

Exam 41: Checks and Electronic Fund Transfers

If a drawee bank certifies a check, who among the following is discharged of their liability on the check?

Correct AnswerverifiedShow Answer

Which of the following statements is true of an oral stop-payment order given by the customer?

Correct AnswerverifiedShow Answer

If a drawer is negligent and contributes to the forgery or alteration of a check, the _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the revised Article 4 of the Uniform Commercial Code, which of the following statements is true of a postdated check?

Correct AnswerverifiedShow Answer

A check on which a bank is both the drawer and the drawee is known as a certified check.

Correct AnswerverifiedShow Answer

Under the Electronic Fund Transfer Act (EFTA), the operators of electronic fund transfer (EFT) systems are given a maximum of thirty (30) calendar days to investigate errors or provisionally recredit the customer's account.

Correct AnswerverifiedShow Answer

When a bank receives a properly drawn and payable check and there are sufficient funds to cover the check, if the bank wrongfully dishonors the check, the bank _____.

Correct AnswerverifiedShow Answer

A check that bears a forged signature of the drawer or payee is nevertheless properly payable from the customer's account.

Correct AnswerverifiedShow Answer

Which of the following best describes a stale check?

Correct AnswerverifiedShow Answer

The customer may give an oral stop-payment order to the bank, but it is valid for only fourteen (14) days unless the customer confirms it in writing during that time.

Correct AnswerverifiedShow Answer

Which of the following statements is true of wire transfers?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The time requirements for notice of postdated checks are similar to those required for:

Correct AnswerverifiedShow Answer

Article 2 of the Uniform Commercial Code (UCC) governs bank deposits and collections.

Correct AnswerverifiedShow Answer

Revised Article 3 of the Uniform Commercial Code recognizes the modern bank practice of retaining checks, and permits the bank to supply only a statement showing the item number, amount, and date of payment.

Correct AnswerverifiedShow Answer

The bank's signature is not required to create a certified check.

Correct AnswerverifiedShow Answer

Which of the following is true of the Check 21 Act?

Correct AnswerverifiedShow Answer

What are the different electronic funds transfer systems utilized by consumers?

Correct AnswerverifiedThe electronic funds transfer (EFT) syst...View AnswerShow Answer

When the depositor deposits a check to a checking account, the bank becomes his agent for collection of the check.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The electronic funds transfer (EFT) syst...
View Answer

Correct Answer
verified