Question 1

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

Accepted Answer

A)  Account management 
B)  Check management 
C)  Account aggregation 
D)  Check scraping 
A)  Account management 
B)  Check management 
C)  Account aggregation 
D)  Check scraping

Question 2

Which of the following is most true about stop-payment orders?

Accepted Answer

A)  Their validity is only for 14 days. 
B)  Their validity is only for six months. 
C)  They must give the bank 14 days to act on the order. 
D)  They can be oral or written. 
A)  Their validity is only for 14 days. 
B)  Their validity is only for six months. 
C)  They must give the bank 14 days to act on the order. 
D)  They can be oral or written.

Question 3

A stop order must be made so a bank is given a reasonable opportunity to act on the order.

Accepted Answer

A) True 
 B)False

Question 4

Unlike many other federal consumer protection measures,the Electronic Funds Transfer Act does not require disclosure of important terms to the consumer.

Accepted Answer

A) True 
 B)False

Question 5

The Federal Reserve operates a domestic wire transfer system known as Fedwire.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true of check collection?

Accepted Answer

A)  Checks and other drafts collected through the banking system usually have two parties-the drawer and the drawee bank. 
B)  If the payee deposits the check at a bank other than the drawee bank,the latter will take a series of steps necessary to reflect the deposit as a credit to the payee's account. 
C)  If the payee deposits the check at the same bank as the drawee bank,the depositary bank will make the ledger entry showing the deposit as a credit to the payee's account. 
D)  If the drawee and depositary banks are in the same town or county,the depositary bank will indorse the check and deliver it to the drawee bank for payment. 
A)  Checks and other drafts collected through the banking system usually have two parties-the drawer and the drawee bank. 
B)  If the payee deposits the check at a bank other than the drawee bank,the latter will take a series of steps necessary to reflect the deposit as a credit to the payee's account. 
C)  If the payee deposits the check at the same bank as the drawee bank,the depositary bank will make the ledger entry showing the deposit as a credit to the payee's account. 
D)  If the drawee and depositary banks are in the same town or county,the depositary bank will indorse the check and deliver it to the drawee bank for payment.

Question 7

Under the Electronic Funds Transfer Act how many days do operators of EFT systems have to investigate errors or provisionally recredit a consumer's account?

Accepted Answer

A)  10 working days 
B)  60 days 
C)  14 working days 
D)  90 days 
A)  10 working days 
B)  60 days 
C)  14 working days 
D)  90 days

Question 8

Mendel had his car repaired by Harry's Garage (HG).He paid by check drawn on ABZ Bank when he collected his car.On the drive home,Mendel realized that the repair had not been made.He immediately called ABZ on his cell phone and told the bank to stop payment on the check.Three days later,HG negotiated the check to Amy,a holder in due course.When Amy went to cash the check,ABZ Bank refused to honor it.What is Mendel's liability on this check?

Accepted Answer

A)  Mendel is not liable to anyone because he stopped the check in time. 
B)  Mendel is liable to Amy because the stop payment order was made through a phone call. 
C)  Mendel is not liable to Amy because she took the check from HG. 
D)  Mendel is liable to Amy because he is the drawer of the check. 
A)  Mendel is not liable to anyone because he stopped the check in time. 
B)  Mendel is liable to Amy because the stop payment order was made through a phone call. 
C)  Mendel is not liable to Amy because she took the check from HG. 
D)  Mendel is liable to Amy because he is the drawer of the check.

Question 9

Which of the following defeats a bank's liability for failing to observe a stop-payment order?

Accepted Answer

A)  That the order was oral rather than written. 
B)  That the bank was not given 14 days to obey the order. 
C)  That the bank paid a person against whom the customer did not have a defense. 
D)  That the bank has the customer sign a disclaimer holding the bank harmless for its failure to exercise ordinary care and good faith regarding its handling of stop-payment orders. 
A)  That the order was oral rather than written. 
B)  That the bank was not given 14 days to obey the order. 
C)  That the bank paid a person against whom the customer did not have a defense. 
D)  That the bank has the customer sign a disclaimer holding the bank harmless for its failure to exercise ordinary care and good faith regarding its handling of stop-payment orders.

Exam 34: Checks and Electronic Transfers

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

Which of the following is most true about stop-payment orders?

A stop order must be made so a bank is given a reasonable opportunity to act on the order.

Unlike many other federal consumer protection measures,the Electronic Funds Transfer Act does not require disclosure of important terms to the consumer.

The Federal Reserve operates a domestic wire transfer system known as Fedwire.

Which of the following is true of check collection?

Under the Electronic Funds Transfer Act how many days do operators of EFT systems have to investigate errors or provisionally recredit a consumer's account?

Which of the following defeats a bank's liability for failing to observe a stop-payment order?

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, Limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinson-Patman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

Filters