Exam 17: Checks and Banking in the Digital Age

Pat,the manager of Quik Mart,deposits the store's receipts in its account at Regional Bank.As to the receipts,the relationship between Quik Mart and the bank is

A customer must examine a bank statement and report any discovered forged signature to recover from the bank for the forgery.

A check carries with it an implied promise to reimburse the bank for paying the check.

A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any errors.

Simon signs a check "pay to the order of Tilly" drawn on Simon's account in United Bank.Vela forges Tilly's indorsement,First Federal Bank cashes the check,and Vela disappears.United pays First Federal and debits Simon's account.Most likely,the ultimate loss will fall on

A bank that has certified a check is under no obligation to accept it.

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

Unauthorized access to an electronic fund transfer system is a federal felony.

First Community Bank agrees to accept a check by setting aside sufficient funds to cover the amount.This check is considered

Tom draws a check, on his account in State Bank in New York, payable to Digital Media, Inc., in San Francisco. Digital deposits the check in its ac¬count at First National Bank. First National deposits the check in the Federal Reserve Bank of San Francisco, which transfers it to the Federal Reserve Bank of New York. That Federal Reserve Bank sends the check to State Bank. -Refer to Fact Pattern 17-2.Tom's bank is

Elmer can write checks on his account at Finance Bank.Gina steals the checks,forges Elmer's signature,and cashes the checks at Finance.The bank is excused from any liability if,after receipt of the first forged check,Elmer fails to report the forgeries within