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Which of the Following Is True of a Bank's Duty

Question 39

Multiple Choice

Which of the following is true of a bank's duty to honor checks?


A) The drawee bank is not under a duty to honor all checks drawn by its customers in presence of sufficient funds in the customers' accounts.
B) If there are insufficient funds on deposit,the bank may charge the customer's account if it does not create an overdraft.
C) If a bank fails to honor a check because of a mistake on its part,the bank is liable to the customer for damages the customer suffers.
D) The drawee bank has a liability to the holder of the check,regardless of whether the check is certified.

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