A) A drawer and a drawee are related to an order,but a payee is not.
B) A drawer,payee,and drawee are all related to an order.
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 payee and drawer are related to an order,but a drawee is not.
G) A) and D)
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A) Under federal law,the only option open to a bank in the event of a customer's overdraft is to credit the customer's account although no charge may be made for the service.
B) In regard to overdraft protection a bank may 1) credit a customer's checking account and charge for this service,2) link a checking account to the customer's savings account to cover the overdraft,and 3) link a checking account to the customer's credit card to cover the overdraft.
C) In regard to overdraft protection a bank may 1) credit a customer's checking account although federal law prohibits charging for this service,2) link a checking account to the customer's savings account to cover the overdraft,and 3) link a checking account to the customer's credit card to cover the overdraft.
D) Under federal law,the only option open to a bank in the event of a customer's overdraft is to credit the customer's account,and a charge may be made for the service.
E) In regard to overdraft protection a bank has only two options 1) link a checking account to the customer's savings account to cover the overdraft,and 2) link a checking account to the customer's credit card to cover the overdraft.
G) A) and C)
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A) No,if one of the checks was over $10,000.
B) Yes,because they must make the funds available on the fifth business day following the day of deposit of the non-local check.
C) Yes,because a depositary bank must release funds on the fifth business day after transfer to a Federal Reserve Bank.
D) Yes,because they must make the funds available on the third business day following the day of deposit of the non-local check.
E) No,if one of the checks was over $5,000.
G) A) and E)
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A) If a bank refuses to certify a check,the check lacks the extra protection of certification.
B) If a bank refuses to certify a check,the check is considered dishonored.
C) If a bank certifies a check,the bank has become primarily liable for the check.
D) If a bank certifies a check,the drawer of the check is no longer liable for the amount of 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.
G) A) and C)
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B
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A) In 2009,Americans wrote approximately 70 billion checks.
B) Article 4 creates a framework controlling deposit and checking agreements between banks and customers;and when Articles 3 and 4 conflict,Article 4 is to take precedence.
C) Checks are considered negotiable instruments under Article 3 of the UCC.
D) Because of electronic fund transfers,checks are of little importance in the U.S.today.
E) Of all the negotiable instruments regulated by the UCC,checks are the most common type used.
G) A) and C)
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B) False
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A) No,because she did not notify the bank at least three days before the preauthorized payment was scheduled.
B) Yes,because she notified the bank to cancel the payment.
C) No,because she did not notify the bank at least one business day before the preauthorized payment was scheduled.
D) No,because she did not notify the bank at least twenty-four hours before the preauthorized payment was scheduled.
E) Yes,because she notified the bank at least one business day before the payment was scheduled.
G) A) and B)
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A
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A) They require a countersignature by a person whose signature appears on the instrument.
B) The person who purchases the traveler's check does not sign the instrument until it is ready to be used to make a purchase.
C) They are payable on a designated date.
D) Like other types of checks,a traveler's check need not state "traveler's check" on the instrument.
E) The drawer is usually a small,local bank.
G) A) and D)
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A) The Uniform Money Services Business Act of 1990.
B) The Electronic Fund Transfer Act of 1978.
C) The Automated Transfer Act of 1990.
D) The Automated Fund Transfer Regulation of 2002.
E) The Electronic Banking Act of 2000.
G) A) and E)
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A) Acknowledging institution
B) Approval institution
C) Facilitating institution
D) Transferring institution
E) Clearinghouse
G) B) and C)
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A) Transfer
B) Intel
C) Smart
D) Electronic
E) Stored-value
G) A) and E)
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A) Yes,because Rhea's check was presented for payment after Jerome died,thus the check is nonpayable.
B) The bank bears no responsibility when the customer dies.
C) No,the bank is responsible for the check because Jerome died.
D) No,the funds must be paid to Rhea by the bank,regardless of whether or not Jerome died.
E) Yes,because it was Rhea's responsibility to notify the bank that Jerome had died.
G) B) and C)
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A
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A) No,because they were written from two different individuals.
B) Probably not,because the checks will be drawn on banks within different Federal Reserve Bank areas,thus,the requirements for availability are different.
C) Yes,because the UCC requires that all funds be available for use within twenty-four hours of deposit.
D) Yes,because the checks will be drawn on the same bank.
E) Yes,because they were deposited at the same time.
G) B) and D)
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A) No one,because the check is nonpayable because it had been altered.
B) The bank is responsible for the check because it cashed a check that had been altered.
C) Jerome,because the bank bears no responsibility for altered checks.
D) No one,because the check is stale.
E) Jerome,as he was responsible to notify the bank that the check was altered.
G) B) and C)
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B) False
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B) False
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A) Payer
B) Payee
C) Depositary
D) Acceptor
E) Transfer
G) A) and C)
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A) 60
B) 20
C) 45
D) 30
E) 10
G) C) and E)
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A) An instrument.
B) A draft.
C) A note.
D) A certificate of deposit.
E) A mark.
G) A) and E)
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A) He was incorrect.The check may be presented again for payment only if notice has been given both to endorsers and the drawer.
B) He was correct.
C) He was incorrect.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) He was incorrect.The holder can attempt to resubmit the check at a later date.
E) He was incorrect.The holder may resubmit the check only if notice is given to the drawer.
G) C) and D)
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