Exam 34: Checks and Electronic Transfers

Laura gets a statement and a pile of paid checks from her bank on June 1.Within the pile of checks,is one check with a forged drawer's signature.Laura does not notify the bank about the forged check until the next month,July 1.Does this delay remove the bank's obligation to recredit Laura's account?

Certified checks must be made available by:

________ is a financial management tool offered by banks and by third-party,Internet-based companies.

While receiving a properly drawn and payable check on a person's account,which of the following circumstances make it a necessity for the bank to honor the check?

Which of the following statements is true concerning multiple forgeries and alterations?

How often must a bank send a statement listing the transactions in an account?

Which of the following is true for a stop-payment order to be effective?

Adams wrote a check to Jimmy for $5,000.After three days,Adam was in an accident and died.Now Jimmy wants to collect money from the bank and so he deposited the check.However,the bank is refusing to pay.Is he entitled to get his money?

In which of the following cases will a drawer and any persons who previously indorsed the check be discharged of their liability on the check?

Banks must retain the legible copy of check for a period of:

"Check 21" is the popular name for a federal law that enables banks to process checks electronically.

Jim gave a postdated check dated December 30 to one of his creditors on December 22.However,the check was presented to Jim's bank on December 24,and the bank honored it.As a result,there was not enough money in his account to cover for another check he had written for December 27,and hence,the check bounced.The bank charged Jim a $20 fee for the bounced check.What is the bank's liability regarding this bounced check?

In case of honoring checks,a bank:

Ben,a Big Bank checking account customer,wrote a check for $1,000 to Mia.At the time that Mia presents the check for payment to Big Bank,Ben has $1,500 in his account.However,the clerk mistakenly refuses to pay the check and stamps it NSF.Mia then goes to the local prosecutor,and Ben is later arrested for writing a bad check.Ben could recover from Big Bank the damages involved in his arrest,such as attorney's fees.

A bank's right or duty to charge a depositor's account for a check can be terminated when a:

When a court determines a person is incompetent,the bank has the right to pay the checks of the incompetent person until:

Edith purchases what is represented to be a new DVD player from Big Al's Electronic Emporium,by giving Al a check for $200 drawn on Big Bank.Edith then discovers that the DVD player is a used model and calls Big Bank to place a stop-payment order on the check.Big Al negotiates the check to John who qualifies as a holder in due course.John presents the check to Big Bank the next day,and Big Bank pays the check.Which of the following statements is most accurate?

A ________ cannot disclaim the bank's responsibility for its own lack of good faith or failure to exercise ordinary care.

A drawer whose bank paid checks over a stop-payment order may not be entitled to have his account recredited if he is unable to show he suffered any loss.

A drawer's written stop-payment order is valid for six months and the drawer can extent it for an additional ________ by giving the bank instructions in writing to continue the order.