Question 1

If a customer's ATM card is lost or stolen,the customer must notify the bank within _____ and if that is done,the customer is then liable for only the first _____ stolen.

Accepted Answer

A)   5 Days; $50
B)   3 Days; $100
C)   2 Days; $50
D)   7 Days; $100
E)   10 Days; $500F) All of the above
G) A) and B)

Question 2

Generally,when an endorsement on a check has been forged,which party is the party ultimately liable for the loss?

Accepted Answer

A)   The drawer.
B)   The first party to accept the forged instrument.
C)   The first endorser of the instrument.
D)   The bank of the first party to accept the forged instrument.
E)   The bank of the drawer even if proper notice was given of the forgery.F) A) and B)
G) A) and C)

Question 3

In which of the following types of checks does the bank draw on itself to pay a specific person?

Accepted Answer

A)   Certified.
B)   Agreed.
C)   Acknowledged.
D)   Cashier's.
E)   Promise.F) A) and C)
G) A) and E)

Question 4

A[n] ______ is an institution created to facilitate banks in their exchange of checks and drafts drawn on one another,as well as to enable banks to settle their daily balances.

Accepted Answer

A)   Clearinghouse
B)   Transferring institution
C)   Facilitating institution
D)   Acknowledging institution
E)   Approval institutionF) A) and B)
G) A) and C)

Question 5

Which of the following is a card containing microchips for storing data that can be used to transfer funds?

Accepted Answer

A)   Stored-value cards.
B)   Smart cards.
C)   Intel cards.
D)   Transfer cards.
E)   Electronic cards.F) All of the above
G) A) and B)

Question 6

What items should a stop payment order list?

Accepted Answer

A stop-payment order should li...

Question 7

Which of the following is true regarding types of electronic fund systems?

Accepted Answer

A)   Automated teller machines, pay-by-telephone systems, point-of-sale systems, and direct deposits are all types of electronic fund systems.
B)   An automated teller machine is a type of electronic fund system; but pay by telephone systems, point-of-sale systems, and direct deposits are not types of electronic fund systems.
C)   Automated teller machines and pay-by-telephone systems are types of electronic fund systems; but point-of-sale systems, and direct deposit systems are not types of electronic fund systems.
D)   Automated teller machines and point-of-sale systems are types of electronic fund systems; but neither a direct deposit system nor a pay-by-telephone system is a type of electronic fund system.
E)   Automated teller machines, point-of-sale systems, and direct deposits are all types of electronic fund systems; but a pay-by-telephone system is not a type of electronic fund system.F) A) and C)
G) D) and E)

Question 8

The Federal Reserve has stated that Regulation E applies to e-money transactions.

Accepted Answer

A) True 
 B)False

Question 9

If a check is not presented to a bank within ____________ of its date,the check is considered stale check.

Accepted Answer

A)   30 Days
B)   90 Days
C)   6 Months
D)   9 Months
E)   1 YearF) A) and D)
G) B) and E)

Question 10

A substitute check is a check that is substituted for a lost check.

Accepted Answer

A) True 
 B)False

Question 11

The ______ bank is the bank upon which a check is drawn.

Accepted Answer

A)   Payor
B)   Payee
C)   Depositary
D)   Transfer
E)   AcceptorF) B) and E)
G) A) and B)

Question 12

Under the UCC,if the customer does not notify the bank of an unauthorized signature within ______ after the statement has been made available,she cannot hold the bank liable for the payment.

Accepted Answer

A)   10 Days
B)   20 Days
C)   30 Days
D)   45 Days
E)   60 DaysF) A) and B)
G) A) and C) C

Question 13

Sometimes the depositary is the same bank as the collecting bank.

Accepted Answer

A) True 
 B)False

Question 14

Bill did not keep a close watch on his ATM card.He discovered,however,when he started to purchase some presents for his girlfriend that it was missing.Unfortunately,over $1,000 had been fraudulent purchased using the card by the time he reported it missing.The first fraudulent charge was made 45 days before Bill reported to his bank that the card was missing.Bill is liable for which of the following?

Accepted Answer

A)   $0
B)   $50
C)   $300
D)   $500
E)   $1,000F) B) and D)
G) A) and D)

Question 15

Which of the following is true regarding parties who are related to an order?

Accepted Answer

A)   A drawer, payee, and drawee are all related to an order.
B)   A payee and drawer are related to an order, but a drawee is not.
C)   A drawee and payee are related to an order, but a drawer is not.
D)   A payee is related to an order, but a drawer and a drawee are not.
E)   A drawer and a drawee are related to an order, but a payee is not.F) B) and D)
G) A) and B)

Question 16

A[n] ______ check is a check for which both the drawer and the drawee are the same bank.

Accepted Answer

A)   Certified
B)   Agreed
C)   Acknowledged
D)   Cashier's
E)   PromiseF) A) and D)
G) A) and E)

Question 17

Which of the following is true regarding whether Harold will have to bear the loss on the first forged check by Susie?

Accepted Answer

A)   Harold will not have to bear the loss because the forgeries were by an employee; otherwise, he would have had to bear the loss.
B)   Harold will not have to bear the loss because the check was forged.
C)   Harold will have to bear the loss because he did not notify the bank of the forgery within the time limit required.
D)   Harold will have to bear the loss because the check was cashed before he notified the bank.
E)   Harold will have to bear the loss because the check was forged.F) None of the above
G) All of the above

Question 18

Which of the following is correct regarding the manager's statement that stop-payment orders may not be oral?

Accepted Answer

A)   The manager is incorrect because under the UCC, a stop-payment order may be given orally.
B)   It depends on the amount of the check because oral stop-payment orders may only be given for checks in an amount over $500.
C)   It depends on the amount of the check because oral stop-payment orders may only be given for checks in an amount under $500.
D)   It depends on the amount of the check because oral stop-payment orders may only be given for checks in an amount under $1,000.
E)   The manager is correct.F) A) and E)
G) All of the above A

Question 19

Which of the following is true regarding entities considered banks under the UCC?

Accepted Answer

A)   Savings and loans and trust companies are considered banks, but credit unions are not.
B)   Savings and loans and credit unions are considered banks, but trust companies are not.
C)   Trust companies and credit unions are considered banks, but savings and loans are not.
D)   Savings and loans, credit unions, and trust companies are all considered banks.
E)   Only an entity holding itself out as a "bank" is considered a bank under the UCC, and therefore neither savings and loans, credit unions, nor trust companies are considered banks.F) B) and E)
G) None of the above

Question 20

Which of the following is false regarding certified checks?

Accepted Answer

A)   If a bank refuses to certify a check, the check is considered dishonored.
B)   If a bank refuses to certify a check, the check lacks the extra protection of certification.
C)   If a bank certifies a check, the drawer of the check is no longer liable for the amount of the check.
D)   If a bank certifies a check, the bank has become primarily liable for the check.
E)   Once a check is certified, funds of the customer are removed from his or her account and placed in the bank's certified check account.F) C) and D)
G) B) and D) A

Exam 29: Checks and Electronic Fund Transfers

If a customer's ATM card is lost or stolen,the customer must notify the bank within _ and if that is done,the customer is then liable for only the first _ stolen.

Correct Answer
verified

Generally,when an endorsement on a check has been forged,which party is the party ultimately liable for the loss?

Correct Answer
verified

In which of the following types of checks does the bank draw on itself to pay a specific person?

Correct Answer
verified

A[n] ______ is an institution created to facilitate banks in their exchange of checks and drafts drawn on one another,as well as to enable banks to settle their daily balances.

Correct Answer
verified

Which of the following is a card containing microchips for storing data that can be used to transfer funds?

Correct Answer
verified

What items should a stop payment order list?

Correct Answer
verified
A stop-payment order should li...
View Answer

Which of the following is true regarding types of electronic fund systems?

Correct Answer
verified

The Federal Reserve has stated that Regulation E applies to e-money transactions.

Correct Answer
verified

If a check is not presented to a bank within ____________ of its date,the check is considered stale check.

Correct Answer
verified

A substitute check is a check that is substituted for a lost check.

Correct Answer
verified

The ______ bank is the bank upon which a check is drawn.

Correct Answer
verified

Under the UCC,if the customer does not notify the bank of an unauthorized signature within ______ after the statement has been made available,she cannot hold the bank liable for the payment.

Correct Answer
verified
C

Sometimes the depositary is the same bank as the collecting bank.

Correct Answer
verified

Correct Answer
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Which of the following is true regarding parties who are related to an order?

Correct Answer
verified

A[n] ______ check is a check for which both the drawer and the drawee are the same bank.

Correct Answer
verified

Which of the following is true regarding whether Harold will have to bear the loss on the first forged check by Susie?

Correct Answer
verified

Which of the following is correct regarding the manager's statement that stop-payment orders may not be oral?

Correct Answer
verified
A

Which of the following is true regarding entities considered banks under the UCC?

Correct Answer
verified

Which of the following is false regarding certified checks?

Correct Answer
verified
A

Exam 29: Checks and Electronic Fund Transfers

If a customer's ATM card is lost or stolen,the customer must notify the bank within _____ and if that is done,the customer is then liable for only the first _____ stolen.

Correct AnswerverifiedShow Answer

Generally,when an endorsement on a check has been forged,which party is the party ultimately liable for the loss?

Correct AnswerverifiedShow Answer

In which of the following types of checks does the bank draw on itself to pay a specific person?

Correct AnswerverifiedShow Answer

A[n] ______ is an institution created to facilitate banks in their exchange of checks and drafts drawn on one another,as well as to enable banks to settle their daily balances.

Correct AnswerverifiedShow Answer

Which of the following is a card containing microchips for storing data that can be used to transfer funds?

Correct AnswerverifiedShow Answer

What items should a stop payment order list?

Correct AnswerverifiedA stop-payment order should li...View AnswerShow Answer

Which of the following is true regarding types of electronic fund systems?

Correct AnswerverifiedShow Answer

The Federal Reserve has stated that Regulation E applies to e-money transactions.

Correct AnswerverifiedShow Answer

If a check is not presented to a bank within ____________ of its date,the check is considered stale check.

Correct AnswerverifiedShow Answer

A substitute check is a check that is substituted for a lost check.

Correct AnswerverifiedShow Answer

The ______ bank is the bank upon which a check is drawn.

Correct AnswerverifiedShow Answer

Under the UCC,if the customer does not notify the bank of an unauthorized signature within ______ after the statement has been made available,she cannot hold the bank liable for the payment.

Correct AnswerverifiedC

Sometimes the depositary is the same bank as the collecting bank.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true regarding parties who are related to an order?

Correct AnswerverifiedShow Answer

A[n] ______ check is a check for which both the drawer and the drawee are the same bank.

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether Harold will have to bear the loss on the first forged check by Susie?

Correct AnswerverifiedShow Answer

Which of the following is correct regarding the manager's statement that stop-payment orders may not be oral?

Correct AnswerverifiedA

Which of the following is true regarding entities considered banks under the UCC?

Correct AnswerverifiedShow Answer

Which of the following is false regarding certified checks?

Correct AnswerverifiedA

If a customer's ATM card is lost or stolen,the customer must notify the bank within _ and if that is done,the customer is then liable for only the first _ stolen.

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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A stop-payment order should li...
View 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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C

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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A

Correct Answer
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Correct Answer
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A