Exam 41: Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Which of the following is an actual damage that a bank would be liable for when a bank wrongfully dishonors a check?

A bank may pay a postdated check unless it has received notice from the customer not to pay until the date on the check.

According to the revised Article 4 of the Uniform Commercial Code,which of the following statements is true of a postdated check?

While a stop-payment order is in effect,a drawee bank is responsible for establishing the fact and amount of the loss.

Which of the following best describes a stale check?

For improper execution or failure to execute payment orders,banks can be liable to:

Which of the following statements is true of wire transfers?

If a bank pays a check that bears a forged signature of the drawer,the transaction will be treated as one in which the bank paid out of:

Explain the difference between a certified check,a cashier's check,and a teller's check.

When issuing a stop-payment order,banks claim that the "reasonable certainty" with which customers must describe the check in question should have the dollar amount exact to the penny because the computers they program require such precision.

Which of the following is a factor of the Electronic Funds Transfer Act that differs from the Fair Credit Billing Act?

Which article of the Uniform Commercial Code covers electronic funds transfers between businesses and financial institutions?

Generally,a drawee bank is obligated to certify a check.

Which of the following statements is true of an oral stop-payment order given by the customer?

Revised Article 3 of the Uniform Commercial Code recognizes the modern bank practice of retaining checks,and permits the bank to supply only a statement showing the item number,amount,and date of payment.

A check on which a bank is both the drawer and the drawee is a:

Salim carelessly makes a check for $100 to Abel in a way that makes it possible for someone to easily alter it.Abel alters the check to read $1,000.Under these circumstances,_____.

Any person authorized to sign a check may stop payment on it,even if he or she did not sign the check in question.

If a bank pays a check after it is given a stop-payment order and has to reimburse its customer for the improperly paid check,_____.

Check 21 contains a special refund procedure,called "expedited recredit," for a customer who suffers a loss because of: