Exam 24: Banking in the Digital Age

Commercial banking practices consider a check that has been outstanding for three months to be a stale check.

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

Travis signs a check "pay to the order of Umberto" drawn on Travis's account in Valley Bank. Travis has $400 in his account but the amount of the check is $500,which the bank pays. This is

Riley pays State Bank $500 plus a service fee to draw a check on itself payable to Torque Plumbing. The party that is responsible for paying the check is

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

A bank that encodes information on an item after its issue warrants to any subsequent bank that the information is correct.

A bank that pays a customer's check bearing a forged indorsement is obligated to recredit the customer's account.

Joni writes Keizer an uncertified check for $500 drawn on Joni's account at Labor Employees Credit Union. Seven months later,Keizer presents the check for payment. The credit unionpays the check in good faith without consulting Joni. The credit union

On Monday,Ellery deposits in her account at Fiscal Bank a local check for $500. After 5:00 p.m. on Friday,from these funds,Ellery can withdraw no more than

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

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

Brendan signs a check "pay to the order of City College Bookstore" drawn on his account in Delta Bank to pay for his current semester's textbooks. The bookstore deposits the check in its account in Eagle Bank. Like most checks,this check is

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

Jackie inserts a debit card issued by her bank into a machine and keys in her personal identification number. She is then able to withdraw $500 in cash. Jackie is using

Dalton presents an uncertified check for payment more than six months after its date. The check was drawn by Emma on her account in First City Bank. If First City follows the usual banking practice in such a case,it will

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

Today,most checks are processed manually.

Keanu presents an instrument that states "pay to the order of Laura" to MegaBank for payment. This instrument is the most common type of negotiable instrument,which is

On an automated teller machine (ATM)belonging to USA Bank,Sven placed a card-skimming device to pull information from the magnetic strips of users' debit cards. The device then transmitted the stolen data to thieves who used it to gain access to,and empty,the bank accounts of the users,including Megan. Megan learned of the theft the next day and promptly notified USA. Is Megan entitled to a recredit of her account for the most of the loss due to the theft? Explain.

Drew signs a check "pay to the order of Eastern State University" drawn on Drew's account in Fidelity Bank to pay her tuition. Drew is