Exam 22: Checks and the Banking System in the Twenty-First Century

Failure to indorse a check is considered improper presentment, and the person presenting the check is not considered a(n) ____________________.

A(n) ____________________ is a type of cashier's check used primarily by tourists who want a safe method of carrying funds while traveling.

A written stop-payment order is effective for

Marsh, without fraudulent intent, wrote a check for $500 on her checking account at Mechanics Mutual Bank, where only $350 was on deposit. Marsh has no agreement with the bank regarding overdrafts. In this case the bank

An overdraft occurs when a

A(n) ____________________ check is one that is dated after its actual date of issue.

New World Bank paid a check issued by Fermi, a depositor, that had been altered from $50 to $500. The amount Fermi can recover from the bank is

A depositor's personal check that the bank guarantees to pay is a

The ____________________ enables depositors to transfer money electronically from their accounts to accounts of creditors.

An oral stop-payment order is effective for fourteen days.

A check drawn on the bank's own funds is called a(n) ____________________.

When a check is certified, the certifying bank

The Electronic Funds Transfer System (EFTS) allows money to be transferred electronically from a depositor's bank account into the account of a store where the depositor made a purchase.

If a bank dishonors a check for no good reason, the customer can collect from the bank

____________________ refers to the amount of time between the date a check is deposited and the date the funds from that check are made available to the depositor.

By using checks, a business has

Franklin wrote a check on the Second National Bank payable to Garth. When Garth presented the check for payment, Second National refused to cash it, although the check was in proper form and Franklin had sufficient funds on deposit at the bank. The Second National Bank is liable to

The drawer of a certified check cannot legally force a bank to stop payment on this type of check.

Jenks requested a bank in Boston to write him a check on its own funds so that he would be able to pay a bill. This check is legally known as a

A bank is absolutely liable to the drawer-depositor for paying any checks that have been materially altered.