Exam 15: Banking in the Digital Age

Each bank in a collection chain must pass a check on before midnight of the day of its receipt.

Tri State Bank agrees to accept a check by setting aside sufficient funds to cover the amount. This check is considered​

Daisy signs a check "pay to the order of Ewan" drawn on Daisy's account in Finance Bank. Graham forges Ewan's indorsement. Finance Bank pays the check. Most likely​

Falls River Bank receives a check drawn on the account of Get-Rich Industries, Inc., one of the bank's customers, at 3 p.m. Friday. Hildy, the presenter of the check, is not one of the bank's customers. The bank uses deferred posting with a 2 p.m. cutoff hour. If it decides to dishonor the check, it must do so by midnight

Smart cards carry and process security programming.

A check is a special type of draft drawn on a bank.

A customer must examine a bank statement and report any discovered forged signature to recover from the bank for the forgery.

A bank that encodes information for electronic presentment warrants to any subsequent bank that the information is correct.

When processing a check, Savings & Trust Bank encodes information, such as the amount of the check, on the item. Savings & Trust thereby warrants to any subsequent bank or payor that​

Stored-value cards can be used to buy goods and services offered by the cards' issuer.

Jackie inserts a debit card issued by her bank into a machine and keys in her personal identification number. She then withdraws $500 in cash. Jackie used​

Simon signs a check "pay to the order of Tilly" drawn on Simon's account in United Bank. Vela forges Tilly's indorsement, Western Bank cashes the check, and Vela disappears. United pays Western and debits Simon's account. Most likely, the ultimate loss will fall on