Question 1

A stop payment order is valid for a period of 90 days only.

Accepted Answer

A) True 
 B)False

Question 2

Raul has had a very successful weekend with his lawn mowing and lawn care business. He makes a deposit of $6,500. The depositary bank may place a hold on the funds for how long?

Accepted Answer

A)   24 hours
B)   48 hours
C)   five days
D)   eight days
E)   ten daysF) A) and B)
G) A) and D)

Question 3

If a customer's ATM card is lost or stolen, the customer must notify the bank within ________; 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) B) and D)
G) A) and C)

Question 4

Which of the following would be stored electronically on microchips, magnetic strips, or other computer media and would allow for the elimination of physical currency?

Accepted Answer

A)   Electronic funds.
B)   Electronic medium.
C)   Digital cash.
D)   Digital resources.
E)   Electronic resources.F) C) and D)
G) C) and E)

Question 5

[Bad Check] Alana, a bank teller, saw that customer Liam did not have sufficient funds in his account to cover a check presented for payment. Alana was new and was confused about what to do with the check. She asked the bank manager, Pedro, about any available options. Pedro told her that the bank was required by law to dishonor the check, the check should be returned to the holder with a notation that it had been dishonored, and that it could not be presented again. Alana asked Pedro if there were any policies the bank could institute to provide customers with overdraft protection, and Pedro answered that those were prohibited by law.
-Which statement is true regarding Pedro's statement that the bank's only choice was to dishonor the check?

Accepted Answer

A)   Pedro is correct.
B)   Pedro is incorrect because under the UCC, the bank could have created an overdraft by paying the check and later charging the account the amount short.
C)   Pedro is incorrect because under the UCC, the bank could have created a subsequent draft by paying the check, and the bank would then have needed to seek the customer's permission to charge his account the amount short.
D)   Pedro is incorrect because under the UCC, the bank could have created a secondary draft by paying the check and charging the account the amount short.
E)   Pedro is incorrect because under the UCC, the bank could have created an excessive draft by paying the check and closing the account at which point, the customer would be free to open a new account.F) B) and C)
G) A) and C)

Question 6

Nolan receives his bank statement from his bank on January 5th and notices a check that was cashed from his account for $350. The check was not authorized and Nolan does not let the bank know right away because he leaving that day to go on vacation. Nolan forgets about the unauthorized payment until March 10th. At this point, with regards to the check,

Accepted Answer

A)   the bank cannot honor the check
B)   Nolan will have to file papers at the bank alleging fraud
C)   Nolan cannot hold the bank liable for the check
D)   Nolan will have to sue the bank to receive his funds
E)   Nolan will have to notify the bank and then wait 30 days to have his money returnedF) A) and B)
G) C) and E)

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 neither point-of-sale systems nor direct deposit systems are 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) A) and B)

Question 8

Michael just started a new job at Sheridan Hospital, Inc. Michael's bi-weekly paycheck is deposited into his bank account for him electronically by Sheridan Hospital payroll services. This is known as ________

Accepted Answer

A)   a point-of-sale deposit.
B)   an authorized deposit.
C)   a transferred deposit.
D)   an approved deposit.
E)   a direct deposit.F) A) and B)
G) C) and D)

Question 9

[Three Checks] On January 1, Jerome writes two checks and dates them January 15, as he is waiting for a large deposit to clear on January 5. The first check is to Rhea, and the second check is to Treya. Treya deposits her check on January 2, but she is notified that the check is dishonored for insufficient funds. On February 1, Jerome writes a check for $50 to Kaleb. Kaleb adds a "0" to the check amount and scratches out the word "Fifty" and writes "Five Hundred" and deposits the check. Jerome dies on April 1. Rhea deposits her check on April 15, but the bank dishonors Rhea's check.
-Who is responsible for the check to Treya?

Accepted Answer

A)   Jerome, because someone who writes a check without sufficient funds is always liable, regardless of whether he notified the bank that the check was postdated.
B)   Jerome, because he should have told Treya not to deposit the check until after January 15.
C)   Treya, because the check clearly identified the date of January 15, and she bears the risk of depositing the check early.
D)   The bank, but only if Jerome had notified the bank that he had postdated the check.
E)   The bank is always responsible for failing to hold funds prior to the date of the check.F) All of the above
G) B) and C)

Question 10

________ banks are the first to receive a check for payment.

Accepted Answer

A)   Donor
B)   Repository
C)   Depositary
D)   Acceptance
E)   PayeeF) A) and E)
G) B) and E)

Exam 29: Checks and Electronic Fund Transfers

Which of the following would be stored electronically on microchips, magnetic strips, or other computer media and would allow for the elimination of physical currency?

Correct Answer
verified

________ banks are the first to receive a check for payment.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Michael just started a new job at Sheridan Hospital, Inc. Michael's bi-weekly paycheck is deposited into his bank account for him electronically by Sheridan Hospital payroll services. This is known as ________

Correct Answer
verified

Correct Answer
verified

Raul has had a very successful weekend with his lawn mowing and lawn care business. He makes a deposit of $6,500. The depositary bank may place a hold on the funds for how long?

Correct Answer
verified

A stop payment order is valid for a period of 90 days only.

Correct Answer
verified

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

Correct Answer
verified

Exam 29: Checks and Electronic Fund Transfers

Which of the following would be stored electronically on microchips, magnetic strips, or other computer media and would allow for the elimination of physical currency?

Correct AnswerverifiedShow Answer

________ banks are the first to receive a check for payment.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Michael just started a new job at Sheridan Hospital, Inc. Michael's bi-weekly paycheck is deposited into his bank account for him electronically by Sheridan Hospital payroll services. This is known as ________

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Raul has had a very successful weekend with his lawn mowing and lawn care business. He makes a deposit of $6,500. The depositary bank may place a hold on the funds for how long?

Correct AnswerverifiedShow Answer

A stop payment order is valid for a period of 90 days only.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified