Exam 20: Banking in the Digital Age

Keanu presents an instrument that states “pay to the order of Laura” to Mega Bank for payment. This instrument is the most common type of negotiable instrument, which is

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

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

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 pay or that​

The check clearing in the 21st Century Act (Check 21) applies only in about 75 percent of the states.

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

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

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

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

A written stop payment order is only valid for thirty days.

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

A customer can escape liability for failing to notify the bank of forged or altered checks when the customer can prove that the bank was negligent.