Exam 22: Introduction to Commercial Paper

Any writing that includes the essential elements of negotiability is considered a valid check when signed and delivered by the:

Courts have repeatedly held that when a check is drawn in careless and incomplete manner that a material alteration can easily be made without the check looking suspicious,the drawer has prepared the way for:

The person who makes a promise is called a 'drawer'.

A check presented more than six months after its date is known as a:

Electronic funds transfer (EFT)refers to a variety of electronic applications for handling:

A commercial paper includes checks in which a bank is ordered,but not drafts wherein a third party is ordered to pay.

A _________ provides a safe means of transferring money and serves as a receipt when paid and canceled by the bank.

The Electronic Funds Transfer Act of 1979 (EFTA)establishes the rights,responsibilities,and liabilities of consumers in dealings with:

________ is the act of fraudulently making or altering a note,check,draft,or some other document,causing the financial loss of another.

A certified check is one that the bank has promised to pay when it is presented for payment.

Describe a cashier's check,who can issue one,and to whom it can be made payable.

Describe the rules and procedures for stopping payment on a check.

A __________ check is one that is dated later than the date the check is written.

An instrument with an unconditional written promise to pay,or pay to the order of another party,a certain sum of money on demand or at a definite time is known as a:

When the amount of a check expressed in figures does not agree with the amount stated in words,the amount expressed in words is considered the true one.

The person who is expected to pay a draft or check must be named or otherwise indicated in the instrument with reasonable certainty for the instrument to be considered:

A written note or letter in which one person promises to pay a certain amount of money to another at a definite time is known as a:

All of the following are essential to negotiable commercial paper EXCEPT the fact that it must be:

The promise in a note,or the order in a check or draft,must be conditional.

Statements requiring that certain things be done or that specific events take place before payment make the instrument a ___________ rather than commercial paper.