Exam 25: Checks, the Banking System, and E-Money

A bank is not permitted to pay a check where sufficient funds are not in the customer's account unless prior arrangements,such as an overdraft protection line of credit,have been made.

Which of the following is true about provisional credits?

When a customer makes a deposit into the bank,the customer is the debtor and the bank is the creditor.

When a drawer makes out an incomplete check,which of the following is true?

A stale check is a check that:

Deferred posting refers to:

Banks cannot charge interest on the overdrafts of its customers.

If a bank pays a check with a forged drawer's signature,the bank must recredit the drawer's account,so the loss usually falls on the bank.

Banks are required to file a Currency Transaction Report with the Internal Revenue Service for:

In order for the holder of a debit card to be liable for no more than $50 of unauthorized use,what must the cardholder do?

Electronic Funds Transfers are covered under Article 4A of the Uniform Commercial Code.

The drawer's bank is also known as the payor bank.

Stop-payment orders:

Which of the following is true about debit cards?

When a check is incomplete,the UCC places the risk of loss due to incompleteness on the drawer.

Paula writes out a check for $30 when she has only $15 in her account.What can her bank do?

When the payee of a check indorses a check to another person (the indorsee),what is true about the indorsee?

Which of the following is not a party to a check?

An oral stop-payment order is effective for 6 months and may be renewed orally for an additional 6 months.

When a bank wrongfully dishonors a check,both the drawer and the payee can recover reasonable damages from the bank.