Question 1

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

Accepted Answer

A)  Payee
B)  Acceptor
C)  Transfer
D)  Depositar y
E)  PayorF) C) and D)
G) None of the above

Question 2

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

Accepted Answer

A)  Certified
B)  Cashier's
C)  Promise
D)  Acknowledged
E)  AgreedF) B) and E)
G) A) and E)

Question 3

Which statement is correct regarding entities considered banks under the UCC?

Accepted Answer

A)  Trust companies and credit unions are considered banks,but savings and loans are not.
B)  Savings and loans and credit unions are considered banks,but trust companies are not.
C)  Savings and loans and trust companies are considered banks,but credit unions are not.
D)  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.
E)  Savings and loans,credit unions,and trust companies are all considered banks.F) None of the above
G) A) and B)

Question 4

Both commercial and consumer electronic fund transfers are governed by the Electronic Fund Transfer Act.

Accepted Answer

A) True 
 B)False

Question 5

Which statement is true about cashier's checks,teller's checks,and certified checks?

Accepted Answer

A)  Cashier's,teller's,and certified checks are considered as cash in the business world.
B)  Cashier's,teller's,and certified checks are less likely to be denied by a bank.
C)  The drawer for cashier's,teller's,and certified checks is the payor bank.
D)  The drawer and the drawee for cashier's,teller's,and certified checks are the same bank.
E)  Cashier's,teller's,and certified checks are often used in payment of withdrawal orders.F) B) and D)
G) A) and C)

Question 6

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

Question 7

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

Accepted Answer

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

Question 8

As set forth in the text,what does the Financial Services Modernization Act,also known as the Gramm-Leach Bliley Act provide regarding financial institutions and customer privacy?

Accepted Answer

Financial institutions are prohibited fr...

Question 9

Checks are considered by many in the business community to be the near equivalent of cash.

Accepted Answer

A) True 
 B)False

Question 10

Regardless of the care used in cashing a check by the bank,a customer must report a forgery within ________ from the date the bank statement showing the forgery is available to the customer or the customer will lose the right to recover.

Accepted Answer

A)  1 Year
B)  90 Days
C)  9 Months
D)  120 Days
E)  180 DaysF) A) and E)
G) A) and B)

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Under the ________,a bank has a duty to pay checks from a customer's account so long as the check is properly payable.

Accepted Answer

A)  Properly payable rule
B)  Check pay rule
C)  Account rule
D)  Payability in fact regulation
E)  There is no such rule.F) C) and E)
G) C) and D)

Question 13

Which of the following is a bank receiving a transferred check during a collection process excluding the first bank and the last bank?

Accepted Answer

A)  Intermediary.
B)  Transferring.
C)  Collecting.
D)  Acknowledging.
E)  Depositary.F) B) and E)
G) C) and D)

Question 14

A check that is accepted at the bank at which it is drawn is a[n] _ check.

Accepted Answer

A)  Transferred
B)  Drawee
C)  Certified
D)  Acknowledged
E)  Cashier'sF) All of the above
G) B) and C)

Question 15

Tony gives Sonora a check for $500.Sonora deposits it in her local bank,which transfers the check to the Federal Reserve Bank in Chicago,which transfers it to Tony's bank in Wisconsin.What type of bank is the Federal Reserve Bank in this situation?

Accepted Answer

A)  A collecting bank or an intermediary bank
B)  A provisional bank
C)  A payor bank
D)  A collecting bank,but not an intermediary bank
E)  A depository bankF) A) and B)
G) A) and C)

Question 16

Which of the following was the result on appeal in Merisier v.Bank of America,the case in the text in which the plaintiff sued challenging the bank's determination that based on her involvement,she was not entitled to funds obtained through alleged fraudulent use of her debit card?

Accepted Answer

A)  On the basis that it was not clearly erroneous,the court on appeal upheld the lower court's decision in favor of the bank.
B)  Recognizing that no deference was due the trial court's decision in favor of the defending bank,the appellate court ruled in favor of the plaintiff because the preponderance of the evidence was in her favor.
C)  The appellate court ruled in favor of the defending bank on the basis that because the plaintiff's PIN number was used,she had no right to recover for alleged fraudulent transactions.
D)  Although recognizing that no deference was due the trial court's decision in favor of the defending bank,the appellate court ruled in favor of the defending bank based on its own review of the facts.
E)  The appellate court ruled in favor of the plaintiff because the decision of the lower court in favor of the defending bank was clearly erroneous.F) A) and B)
G) C) and E)

Question 17

Which of the following is true about electronic check presentment?

Accepted Answer

A)  The UCC is silent as to electronic check presentment.
B)  It is not possible process checks on the day of deposit.
C)  The individual who encodes the information from the check does not need to warrant that the information is correct.
D)  Banks may transmit substitute checks,instead of the actual checks,for payment between banks.
E)  Only the actual check may be transmitted for payment between banks.F) A) and C)
G) A) and B)

Question 18

Checks are non-negotiable instruments.

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

________ is a deposit that is preauthorized and performed on a customer's account through an electronic terminal.

Accepted Answer

A)  An authorized deposit
B)  A direct deposit
C)  A transferred deposit
D)  A point-of-sale deposit
E)  An approved depositF) A) and C)
G) A) and D)

Exam 29: Checks and Electronic Fund Transfers

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

Correct AnswerverifiedShow Answer

Which of the following is a bank receiving a transferred check during a collection process excluding the first bank and the last bank?

Correct AnswerverifiedShow Answer

Which statement is correct regarding entities considered banks under the UCC?

Correct AnswerverifiedShow Answer

Which statement is true about cashier's checks,teller's checks,and certified checks?

Correct AnswerverifiedShow Answer

Checks are considered by many in the business community to be the near equivalent of cash.

Correct AnswerverifiedShow Answer

Checks are non-negotiable instruments.

Correct AnswerverifiedShow Answer

________ is a deposit that is preauthorized and performed on a customer's account through an electronic terminal.

Correct AnswerverifiedShow Answer

As set forth in the text,what does the Financial Services Modernization Act,also known as the Gramm-Leach Bliley Act provide regarding financial institutions and customer privacy?

Correct AnswerverifiedFinancial institutions are prohibited fr...View AnswerShow Answer

A check that is accepted at the bank at which it is drawn is a[n] _ check.

Correct AnswerverifiedShow Answer

Tony gives Sonora a check for $500.Sonora deposits it in her local bank,which transfers the check to the Federal Reserve Bank in Chicago,which transfers it to Tony's bank in Wisconsin.What type of bank is the Federal Reserve Bank in this situation?

Correct AnswerverifiedShow Answer

Regardless of the care used in cashing a check by the bank,a customer must report a forgery within ________ from the date the bank statement showing the forgery is available to the customer or the customer will lose the right to recover.

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

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

Which of the following was the result on appeal in Merisier v.Bank of America,the case in the text in which the plaintiff sued challenging the bank's determination that based on her involvement,she was not entitled to funds obtained through alleged fraudulent use of her debit card?

Correct AnswerverifiedShow Answer

Both commercial and consumer electronic fund transfers are governed by the Electronic Fund Transfer Act.

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

Which of the following is true about electronic check presentment?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Under the ________,a bank has a duty to pay checks from a customer's account so long as the check is properly payable.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Financial institutions are prohibited fr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified