Exam 31: Checks and Funds Transfers

A debit transaction occurs when a person making a payment requests such payment be made to the beneficiary's bank.

The standard form of check does not specify when it is payable,and it is therefore automatically payable on demand.

The drawee of a check is always a bank.

Ordinarily,the drawee bank is liable to the drawer when it pays a check on which the drawer's signature has been forged.

A tender occurs when the holder of a check or other consumer transaction authorization demands payment.

The delivery of a check is regarded as an assignment of money on deposit,and the drawee bank is required to pay the holder the amount of the check.

If a bank pays a check whose face has been altered to increase the amount above that which the drawer intended to pay,the bank:

Which of the following statements is correct concerning a stale check?

In a complex funds transfer,an intermediary bank may receive and transmit the payment order.

A written stop payment order is effective for one year.

If a bank improperly refuses to make payment of checks for which its customer has sufficient funds on deposit,it is liable to the drawer for damages sustained by the drawer in consequence of such dishonor.

Customers are precluded from asserting unauthorized signatures or alterations if they do not report them within __________ from the time the bank statement is received.

Funds transfers made by businesses are governed by __________ regulations.

In the case of either a check or a draft,the drawer may be held civilly liable if the instrument is dishonored.

A bank's customer whose signature has been forged may be barred from holding the bank liable if the customer's negligence substantially contributed to the making of the forgery.

A bank always is liable to the depositor on a counterfeit check that the bank has paid.

A bank must be given a reasonable amount of time to put a stop payment order into effect.

Checks that involve amounts of more than $5,000 generally trigger the bank reporting requirements under the USA Patriot Act.

A bank is not required to pay a check presented more than six months after its date.

If oral,a stop payment order is binding on the bank for __________ days unless confirmed in writing within that time.