Question 1

The customer cannot order a stop payment on an electronic fund transfer.

Accepted Answer

A) True 
 B)False

Question 2

A written stop-payment order is valid for only 30 days.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is defined by the UCC as a change,without consent,that nullifies the obligation of a party to the instrument?

Accepted Answer

A)  A reformation.
B)  A transformation.
C)  An alteration.
D)  A defacement.
E)  A material addition.F) All of the above
G) C) and D)

Question 4

The depositary bank is sometimes the same as the collecting bank.

Accepted Answer

A) True 
 B)False

Question 5

Which statement is true regarding the bank manager saying that the bank could not incur any liability for damages for the failure to stop payment on a check?

Accepted Answer

A)  The manager is incorrect,and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided,but only up to $1,000.
B)  The manager is correct.
C)  The manager is incorrect,and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided.
D)  The manager is incorrect,and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided,but only up to $500.
E)  The manager is incorrect,and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided,but only up to $1,500.F) A) and B)
G) A) and C)

Question 6

Assuming the bank is not negligent,in the case of multiple forgeries by the same wrongdoer,what is the effect of a customer's failure to notify the bank of the first forgery in regard to subsequent forgeries?

Accepted Answer

A)  The customer may recover on a subsequent forgery if it is reported to the bank within 15 days after the statement showing the subsequent forgery is received by the customer.
B)  There is no effect because each forgery stands on its own.
C)  The customer is barred from recovering on the subsequent forgeries.
D)  The customer may recover on a subsequent forgery if it is reported to the bank within 10 days after the statement showing the subsequent forgery is received by the customer.
E)  The customer may recover on a subsequent forgery if it is reported to the bank within 5 days after the statement showing the subsequent forgery is received by the customer.F) A) and E)
G) A) and D)

Question 7

Henry buys Frank's used car for $5,000.The car is in great shape and Henry leaves town in it.Henry paid Frank with a cashier's check,but later decided that he would rather not pay at all.Accordingly,Henry told the bank the check was stolen.What rights,if any,does Frank have,and what liabilities and other problems,if any,does Henry face?

Accepted Answer

Frank may sue and recover agai...

Question 8

The UCC states that a customer can postdate a check and that the customer has no obligations to give the bank notice of the postdated check.

Accepted Answer

A) True 
 B)False

Question 9

Is Ariel correct that the EFT charge to the veterinarian should be removed because it was not authorized?

Accepted Answer

A)  No,because she did not notify the bank of the errors within 60 days of receiving her bank statement.
B)  Yes,because Ariel did not authorize the payment.
C)  No,because she did not notify the bank of the errors within 90 days of receiving her bank statement.
D)  Yes,but only if Ariel can prove that she did not authorize the payment and that she does not own a pet.
E)  Yes,because Ariel did not authorize the payment and she notified the bank of the error.F) A) and C)
G) B) and D)

Question 10

Which of the following is the party giving the order to pay on a draft?

Accepted Answer

A)  The payor.
B)  The draftor.
C)  The draftee.
D)  The drawee.
E)  The drawer.F) A) and E)
G) A) and B)

Question 11

When the payor and payee have accounts at the same bank,the bank will issue a ________ credit to the payee's account,and,if the bank does not dishonor the check,the credit will become an actual payment.

Accepted Answer

A)  Possible
B)  Interim
C)  Potential
D)  Provisional
E)  TemporaryF) B) and E)
G) B) and D)

Question 12

[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 excessive draft by paying the check and closing the account at which point,the customer would be free to open a new account.
C)  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.
D)  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.
E)  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.F) B) and D)
G) None of the above

Question 13

When the depositary bank is the same bank as the payor bank,the check is referred to as a[n] ________.

Accepted Answer

A)  Unitary item
B)  On-us item
C)  Uniform item
D)  Combined item
E)  Condensed itemF) A) and E)
G) C) and E)

Question 14

Is the bank required to stop payment on the internet order for the expensive watch?

Accepted Answer

A)  Yes,so long as Ariel notifies the bank at least three days before the payment is scheduled.
B)  No,while a customer may stop a preauthorized payment,a customer cannot order a stop payment on an EFT because such transfers occur instantaneously.
C)  Yes,a customer may stop a preauthorized payment.
D)  Yes,as long as she does not receive the watch.
E)  No,a customer may not stop a preauthorized payment.F) C) and D)
G) A) and B)

Question 15

First Bank has determined that 2:00 p.m.is the cutoff hour for handling checks,and that all checks received after this deadline will be posted to the customer's account the following day.Ronald,an attorney,is irate about the bank's policy and tells the clerk that its policy violates the UCC.Is he correct?

Accepted Answer

A)  Yes,although the UCC allows banks to establish cutoff hours for handling checks,the earliest a bank may require for such a policy is 4:00 p.m.
B)  No,the UCC specifically states that all banks must establish a 2:00 p.m.cutoff hour for handling checks.
C)  No,the UCC allows banks to establish cutoff hours for making entries on their books.
D)  No,the UCC is silent regard cutoff hours for banks.
E)  Yes,the UCC does not allow banks to establish cutoff hours for handling checks.F) C) and E)
G) A) and E)

Question 16

Assuming a proper and timely claim is made,which of the following is true regarding the UCC's allowance of full recovery in the event that certain types of checks are lost,stolen,or destroyed?

Accepted Answer

A)  The UCC allows for full recovery if a cashier's check or certified check is lost,stolen,or destroyed;but full recovery is not allowed if a teller's check is lost,stolen,or destroyed.
B)  The UCC allows for full recovery if a cashier's check is lost,stolen,or destroyed;but in regard to a teller's check or certified check,full recovery is only allowed if the instrument is lost or stolen,not if it is destroyed.
C)  The UCC allows for full recovery if a cashier's,certified,or teller's check is lost,stolen,or destroyed.
D)  Because individuals are expected to properly safeguard checks,the UCC does not allow for recovery if a cashier's,teller's,or certified check is lost,stolen,or destroyed.
E)  The UCC allows for full recovery if a cashier's check is lost,stolen,or destroyed;but full recovery is not allowed if a teller's check or certified check is lost,stolen,or destroyed.F) B) and E)
G) C) and D)

Question 17

In India,unlike in the United States,money orders may be issued only by the post office.

Accepted Answer

A) True 
 B)False

Question 18

What are the six requirements for a check to be considered properly payable?

Accepted Answer

For a check to be co...

Question 19

Which of the following is the party ordered to pay on a draft?

Accepted Answer

A)  The drawee.
B)  The draftee.
C)  The draftor.
D)  The drawer.
E)  The payee.F) C) and D)
G) B) and C)

Question 20

Which statement is correct regarding whether Tom will have to bear the loss on the first forged check by Rose?

Accepted Answer

A)  Tom will not have to bear the loss because the check was forged.
B)  Tom will not have to bear the loss because the forgeries were by an employee;otherwise,he would have had to bear the loss.
C)  Tom will have to bear the loss because he did not notify the bank of the forgery within the time limit required.
D)  Tom will have to bear the loss because the check was forged.
E)  Tom will have to bear the loss because the check was cashed before he notified the bank.F) B) and C)
G) A) and D)

Exam 29: Checks and Electronic Fund Transfers

What are the six requirements for a check to be considered properly payable?

Correct Answer
verified
For a check to be co...
View Answer

Which of the following is defined by the UCC as a change,without consent,that nullifies the obligation of a party to the instrument?

Correct Answer
verified

Assuming a proper and timely claim is made,which of the following is true regarding the UCC's allowance of full recovery in the event that certain types of checks are lost,stolen,or destroyed?

Correct Answer
verified

When the payor and payee have accounts at the same bank,the bank will issue a ________ credit to the payee's account,and,if the bank does not dishonor the check,the credit will become an actual payment.

Correct Answer
verified

The depositary bank is sometimes the same as the collecting bank.

Correct Answer
verified

Correct Answer
verified

In India,unlike in the United States,money orders may be issued only by the post office.

Correct Answer
verified

The customer cannot order a stop payment on an electronic fund transfer.

Correct Answer
verified

Which of the following is the party giving the order to pay on a draft?

Correct Answer
verified

Assuming the bank is not negligent,in the case of multiple forgeries by the same wrongdoer,what is the effect of a customer's failure to notify the bank of the first forgery in regard to subsequent forgeries?

Correct Answer
verified

The UCC states that a customer can postdate a check and that the customer has no obligations to give the bank notice of the postdated check.

Correct Answer
verified

When the depositary bank is the same bank as the payor bank,the check is referred to as a[n] ________.

Correct Answer
verified

A written stop-payment order is valid for only 30 days.

Correct Answer
verified

Correct Answer
verified

Which statement is true regarding the bank manager saying that the bank could not incur any liability for damages for the failure to stop payment on a check?

Correct Answer
verified

Is Ariel correct that the EFT charge to the veterinarian should be removed because it was not authorized?

Correct Answer
verified

Correct Answer
verified
Frank may sue and recover agai...
View Answer

Which of the following is the party ordered to pay on a draft?

Correct Answer
verified

Is the bank required to stop payment on the internet order for the expensive watch?

Correct Answer
verified

Which statement is correct regarding whether Tom will have to bear the loss on the first forged check by Rose?

Correct Answer
verified

Exam 29: Checks and Electronic Fund Transfers

What are the six requirements for a check to be considered properly payable?

Correct AnswerverifiedFor a check to be co...View AnswerShow Answer

Which of the following is defined by the UCC as a change,without consent,that nullifies the obligation of a party to the instrument?

Correct AnswerverifiedShow Answer

Assuming a proper and timely claim is made,which of the following is true regarding the UCC's allowance of full recovery in the event that certain types of checks are lost,stolen,or destroyed?

Correct AnswerverifiedShow Answer

When the payor and payee have accounts at the same bank,the bank will issue a ________ credit to the payee's account,and,if the bank does not dishonor the check,the credit will become an actual payment.

Correct AnswerverifiedShow Answer

The depositary bank is sometimes the same as the collecting bank.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In India,unlike in the United States,money orders may be issued only by the post office.

Correct AnswerverifiedShow Answer

The customer cannot order a stop payment on an electronic fund transfer.

Correct AnswerverifiedShow Answer

Which of the following is the party giving the order to pay on a draft?

Correct AnswerverifiedShow Answer

Assuming the bank is not negligent,in the case of multiple forgeries by the same wrongdoer,what is the effect of a customer's failure to notify the bank of the first forgery in regard to subsequent forgeries?

Correct AnswerverifiedShow Answer

The UCC states that a customer can postdate a check and that the customer has no obligations to give the bank notice of the postdated check.

Correct AnswerverifiedShow Answer

When the depositary bank is the same bank as the payor bank,the check is referred to as a[n] ________.

Correct AnswerverifiedShow Answer

A written stop-payment order is valid for only 30 days.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which statement is true regarding the bank manager saying that the bank could not incur any liability for damages for the failure to stop payment on a check?

Correct AnswerverifiedShow Answer

Is Ariel correct that the EFT charge to the veterinarian should be removed because it was not authorized?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedFrank may sue and recover agai...View AnswerShow Answer

Which of the following is the party ordered to pay on a draft?

Correct AnswerverifiedShow Answer

Is the bank required to stop payment on the internet order for the expensive watch?

Correct AnswerverifiedShow Answer

Which statement is correct regarding whether Tom will have to bear the loss on the first forged check by Rose?

Correct AnswerverifiedShow Answer

Correct Answer
verified
For a check to be co...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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
verified
Frank may sue and recover agai...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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