Exam 18: Banking in the Digital Age

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​

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

Boris can write checks on his account at City Bank. Demi steals the checks, forges Boris's signature, and cashes the checks at City. The bank is excused from any liability if, after receipt of the first forged check, Boris fails to report the forgeries within​

When a customer deposits cash into a checking account, he or she becomes a debtor for the amount deposited.

E-money replaces physical cash with virtual cash.

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

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

Check 21 applies in only half of the states.

A check is a special type of draft.

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

Shane issues a check drawn on Thrifty Bank to Farm Supply Store to pay for a rototiller. Later, Shane discovers a defect in the device and orders Thrifty to stop payment on the check. Shane does not renew the order, and the bank clears the check eight months later. The bank​

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