Exam 25: Checks and Banking in the Digital Age

A forged signature is effective as the signature of a drawer to the extent that is resembles the drawer's actual signature.

Jackie inserts a debit card issued by her bank into a machine and keys in her personal identification number.She is then able to withdraw $500 in cash.Jackie is using a

The first bank to receive a check for payment is the depositary bank.

Paris knowingly divulges to Media Exposure magazine information about Randy's e-money payments to City Bank.The payments were in trans?mission to City Bank when Paris,without the consent of Randy or City Bank,discovered and revealed them.This may be a violation of

E-Bank,an online financial institution,gives financial information about Paula and other customers to a federal agency without the cus?tomers' permission.E-Bank may be liable under

Trudy forges Uma's signature on a check "payable to the order of Trudy" drawn on Uma's account in Verity Bank.Most likely,if the bank pays the check

The Federal Reserve System acts as a clearinghouse where banks exchange checks.

On Monday,Michelle deposits in her account at Fiscal Bank a local check for $500.After 5:00 p.m.on Friday,from these funds,Michelle can withdraw no more than

Little Local Bank wrongfully fails to honor a check signed by its customer Andrea.Little Local Bank is

Each bank in a collection chain must pass a check on before noon of the day of its receipt.

If a customer does not have sufficient funds to pay a check available in his or her checking account and the bank dishonors the check,then the bank is liable to the customer.

Scott presents an instrument that states "pay to the order of Scott" to Town Bank for payment.This instrument is the most common type of negotiable instrument,which is

A bank cannot recover from a party who cashes a check bearing a forged indorsement once the bank has accepted and paid the item.

Stored-value cards are a form of digital cash.

A substitute check is a paper reproduction of the front and back of an original check that contains all the same information required on checks for automated processing.

Mary writes a check drawn on County Bank for $400 "payable to Bill" on May 1.Mary dies on May 3.Bill presents the check to County Bank on May 5.County Bank

Commercial banking practices consider a check that has been outstanding for three months to be a stale check.

Ellen pays State Bank $500 plus a service fee to draw a check on itself payable to Paul's Plumbing.Which of the following parties is responsible for paying the check?

Dru signs a check "pay to the order of Eppie" drawn on Dru's account in First Federal Bank.Greta forges Eppie's indorsement.First Federal pays the check.Most likely

Today,most checks are processed manually.