Exam 15: Banking in the Digital Age

A forged signature is effective as the signature of a drawer to the extent that is resembles the drawer's actual signature.

Any failure of a bank to honor a check because it would create an overdraft is a wrongful dishonor.

A drawer is liable to the holder of a check in a civil suit if the check is dishonored for insufficient funds.

Foster forges Greta's signature on a check "payable to the order of Foster" drawn on Greta's account in Hearthside Bank. Most likely, if the bank pays the check​

Cleo writes a check for $100 drawn on Debit & Credit Bank and presents it to Elegant Jewelers for payment. If the check is not backed by sufficient funds and intent to defraud can be proved, Cleo may be prosecuted for

Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature

Today, most checks are processed manually.

Ana writes a check to Becky on Ana's account at Community Bank. The bank dishonors the check even though Ana has sufficient funds in her account. The bank is liable to​

Financial institutions that exchange digital images of checks must also send the original paper checks.

Any local check deposited must be available for withdrawal by check or as cash within one business day from the date of deposit.

The Federal Reserve System acts as a clearinghouse where banks exchange checks.

Only a customer or a person authorized to draw on an account can order a bank not to pay a check when it is presented for payment.

Homer can write checks on his account at InterCity Bank. Jemma steals the checks, forges Homer's signature, and cashes the checks at InterCity. The bank is excused from any liability if, after receipt of the bank statement following the first forged check, Homer fails to report the forgery within

The Uniform Commercial Code regulates checks.

When a bank draws a check on itself, the check is called a cashier's check.

Rico buys a meal in Sushi Bowl using the simplest kind of e-money system. This means of payment is

Franco buys a sound system from Georg at Georg's garage sale. Franco writes Georg a check for $250 to pay for the system. Georg is​

The first bank to receive a check for payment is the intermediary bank.

The legal incompetence of a customer immediately revokes a bank's authority to pay an item.

A bank-customer relationship gives rise to contractual rights and duties.