Exam 22: Introduction to Commercial Paper

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

A person may not postdate a check for self-protection when some act is to be completed by the payee before the date of the check.

The parties involved in a draft or a check have particular names. The person who receives the money is called the:

An Automated Teller Machine performs many of the functions of a bank as would a

A __________ is a certified check issued in a denomination of $20 or more by certain banks, travel agencies, and financial services companies.

Checks are sometimes payable on demand.

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.

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

A system which allows a consumer to transfer funds from a bank account to the merchant's bank account to pay for merchandise purchased is known as a:

An instruction a depositor gives to his or her bank not to pay a particular check is known as a(n):

Commercial paper may be handwritten, printed, or written by any other means that will make a mark.

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:

Commercially acceptable documents, such as notes, checks, and drafts, are used to transfer money from one person to another.

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:

A cashier's check is drawn against the depositor's own funds.

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

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

Because it has the opportunity to inspect a check at the time of payment, the ____ is liable if it pays a raised check, unless the drawer, through carelessness, wrote the check in such a way that it could easily be altered.

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

If a drawer of a check has the bank certify it, he or she remains _________for payment of the check until the holder can reasonably present it for payment.