Question 1

When processing a check, Platinum Bank encodes information, such as the amount of the check, on the item. Platinum thereby warrants to any subsequent bank or payor

Accepted Answer

A)  the item has been returned to the drawer.
B)  nothing.
C)  the check has been processed manually.
D)  the encoded information is correct.E) A) and B)
F) A) and C)

Question 2

Fewer records are available with electronic banking to prove or disprove that a transaction occurred.

Accepted Answer

A) True 
 B)False

Question 3

On Friday morning, Geoff deposits into his account at Heartland Bank a $500 check from Imelda, who also has an account at Heartland. On that same day, this check is considered

Accepted Answer

A)  cashiered.
B)  certified.
C)  paid.
D)  a provisional credit.E) None of the above
F) B) and D)

Question 4

If a bank pays a stale check in good faith but without consulting the customer, the bank has no right to charge the customer's account for the amount.

Accepted Answer

A) True 
 B)False

Question 5

A customer can refuse to accept a substitute check created from the digital image of an original check as proof of payment.

Accepted Answer

A) True 
 B)False

Question 6

Quint signs a check "pay to the order of Rona" drawn on Quint's account at Suburban Bank. Quint has $400 in his account but the amount of the check is $500, which the bank pays. This is

Accepted Answer

A)  a dishonored check.
B)  an overdraft.
C)  a certified check.
D)  a stale check.E) A) and B)
F) C) and D)

Question 7

Dill issues a check drawn on Eagle Bank to Farm Supply Store to pay for a rototiller. Later, Dill discovers a defect in the device and orders the bank to stop payment on the check. Dill does not renew the order, and the bank clears the check eight months later. The bank

Accepted Answer

A)  must recredit Dill's account.
B)  must obtain funds from Farm Supply to cover the check.
C)  must locate and substitute an acceptable rototiller.
D)  none of the choices.E) All of the above
F) None of the above

Question 8

Ciera presents an instrument that states "pay to the order of Duff" to East Bank for payment. As the most common type of negotiable instrument regulated by the Uniform Commercial Code, this is

Accepted Answer

A)  a substitute check.
B)  a check.
C)  an electronic fund transfer.
D)  a payment via a mobile device.E) None of the above
F) C) and D)

Question 9

Misha's debit card, issued by National United Bank, is stolen and used without her permission. She tells the bank within thirty days. She may be required to pay no more than

Accepted Answer

A)  $5.
B)  $50.
C)  $500.
D)  $5,000.E) A) and B)
F) A) and C)

Question 10

Dag signs a check "pay to the order of Eton" drawn on Dag's account at First Bank and dates the check "May 1." Eton presents the check to the bank for payment on December 15. This is

Accepted Answer

A)  a cashier's check.
B)  an overdraft.
C)  a certified check.
D)  a stale check.E) B) and D)
F) All of the above

Question 11

When a bank wrongfully dishonors a check, it is liable to the customer for any resulting damages.

Accepted Answer

A) True 
 B)False

Question 12

Gillis writes a check to Harley as payment for a game player but soon discovers it is broken. Gillis goes to the drawee bank and orally authorizes Ilene, a bank officer, to stop payment on the check. This order is valid for

Accepted Answer

A)  fourteen days.
B)  any stated period of time.
C)  six days.
D)  six months.E) A) and D)
F) A) and C)

Exam 28: Banking

Quint signs a check "pay to the order of Rona" drawn on Quint's account at Suburban Bank. Quint has $400 in his account but the amount of the check is $500, which the bank pays. This is

Correct Answer
verified

Gillis writes a check to Harley as payment for a game player but soon discovers it is broken. Gillis goes to the drawee bank and orally authorizes Ilene, a bank officer, to stop payment on the check. This order is valid for

Correct Answer
verified

Fewer records are available with electronic banking to prove or disprove that a transaction occurred.

Correct Answer
verified

A customer can refuse to accept a substitute check created from the digital image of an original check as proof of payment.

Correct Answer
verified

Misha's debit card, issued by National United Bank, is stolen and used without her permission. She tells the bank within thirty days. She may be required to pay no more than

Correct Answer
verified

When processing a check, Platinum Bank encodes information, such as the amount of the check, on the item. Platinum thereby warrants to any subsequent bank or payor

Correct Answer
verified

Dill issues a check drawn on Eagle Bank to Farm Supply Store to pay for a rototiller. Later, Dill discovers a defect in the device and orders the bank to stop payment on the check. Dill does not renew the order, and the bank clears the check eight months later. The bank

Correct Answer
verified

On Friday morning, Geoff deposits into his account at Heartland Bank a $500 check from Imelda, who also has an account at Heartland. On that same day, this check is considered

Correct Answer
verified

If a bank pays a stale check in good faith but without consulting the customer, the bank has no right to charge the customer's account for the amount.

Correct Answer
verified

Ciera presents an instrument that states "pay to the order of Duff" to East Bank for payment. As the most common type of negotiable instrument regulated by the Uniform Commercial Code, this is

Correct Answer
verified

Dag signs a check "pay to the order of Eton" drawn on Dag's account at First Bank and dates the check "May 1." Eton presents the check to the bank for payment on December 15. This is

Correct Answer
verified

When a bank wrongfully dishonors a check, it is liable to the customer for any resulting damages.

Correct Answer
verified

Exam 28: Banking

Quint signs a check "pay to the order of Rona" drawn on Quint's account at Suburban Bank. Quint has $400 in his account but the amount of the check is $500, which the bank pays. This is

Correct AnswerverifiedShow Answer

Gillis writes a check to Harley as payment for a game player but soon discovers it is broken. Gillis goes to the drawee bank and orally authorizes Ilene, a bank officer, to stop payment on the check. This order is valid for

Correct AnswerverifiedShow Answer

Fewer records are available with electronic banking to prove or disprove that a transaction occurred.

Correct AnswerverifiedShow Answer

A customer can refuse to accept a substitute check created from the digital image of an original check as proof of payment.

Correct AnswerverifiedShow Answer

Misha's debit card, issued by National United Bank, is stolen and used without her permission. She tells the bank within thirty days. She may be required to pay no more than

Correct AnswerverifiedShow Answer

When processing a check, Platinum Bank encodes information, such as the amount of the check, on the item. Platinum thereby warrants to any subsequent bank or payor

Correct AnswerverifiedShow Answer

Dill issues a check drawn on Eagle Bank to Farm Supply Store to pay for a rototiller. Later, Dill discovers a defect in the device and orders the bank to stop payment on the check. Dill does not renew the order, and the bank clears the check eight months later. The bank

Correct AnswerverifiedShow Answer

On Friday morning, Geoff deposits into his account at Heartland Bank a $500 check from Imelda, who also has an account at Heartland. On that same day, this check is considered

Correct AnswerverifiedShow Answer

If a bank pays a stale check in good faith but without consulting the customer, the bank has no right to charge the customer's account for the amount.

Correct AnswerverifiedShow Answer

Ciera presents an instrument that states "pay to the order of Duff" to East Bank for payment. As the most common type of negotiable instrument regulated by the Uniform Commercial Code, this is

Correct AnswerverifiedShow Answer

Dag signs a check "pay to the order of Eton" drawn on Dag's account at First Bank and dates the check "May 1." Eton presents the check to the bank for payment on December 15. This is

Correct AnswerverifiedShow Answer

When a bank wrongfully dishonors a check, it is liable to the customer for any resulting damages.

Correct AnswerverifiedShow Answer

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