Question 1

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​

Accepted Answer

A)  ​may not pay the check. 
B)  ​may pay the check. 
C)  ​must consult with Mary's heirs before paying the check. 
D)  ​must read Mary's will before paying the check.

Question 2

Fact Pattern 25-1Marlene loses her Neighborly Bank access card. She realizes her loss the next day but waits a week to call the bank. Meanwhile, Odell finds and uses Marlene's card to withdraw $3,000 from Marlene's account.
-Refer to Fact Pattern 25-1.When Marlene receives her Neighborly Bank statement,she demands that the bank investigate the matter and recredit his account.The bank

Accepted Answer

A)  ​has no duty to investigate. 
B)  ​must investigate and, if the dispute is not resolved within ten days, recredit Marlene's account (at least until the dispute is resolved). 
C)  ​must investigate and immediately recredit Marlene's account (at least until the dispute is resolved). 
D)  must investigate but need not recredit Marlene's account.

Question 3

Drew signs a check "pay to the order of East State University" drawn on Drew's account in Fidelity Bank to pay her tuition.Drew is​

Accepted Answer

A)  ​none of the choices. 
B)  ​the drawee. 
C)  ​the drawer. 
D)  ​the payee.

Question 4

Albert buys a surround sound system from his neighbor George at George's garage sale.Albert writes George a check for $250 for the sound system.George is​

Accepted Answer

A)  ​none of the choices. 
B)  ​the drawee. 
C)  ​the drawer. 
D)  ​the payee.

Question 5

Any local check deposited must be available for withdrawal by check or as cash within one business day from the date of deposit.

Accepted Answer

A) True 
 B)False

Question 6

A customer can escape liability for failing to notify the bank of forged or altered checks when the customer can prove that the bank was negligent.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  ​cashed. 
B)  ​certified. 
C)  ​deposited. 
D)  ​provisionally credited.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service.This is​

Accepted Answer

A)  ​a cashier's check. 
B)  ​an overdraft. 
C)  ​a stale check. 
D)  ​a stop-payment order.

Question 10

Gillian writes a check to Harris as payment for a video game player but soon discovers the player is broken.She goes to the drawee bank and orally authorizes Ilene,a bank officer,to stop payment on the check.This order is valid for​

Accepted Answer

A)  ​fourteen days. 
B)  ​one year. 
C)  ​six days. 
D)  ​six months.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

On an automated teller machine (ATM)belonging to USA Bank,Sven placed a card-skimming device to pull information from the magnetic strips of users' debit cards.The device then transmitted the stolen data to thieves who used it to gain access to,and empty,the bank accounts of the users,including Megan.Megan learned of the theft the next day and promptly notified USA.Is Megan entitled to a recredit of her account for the most of the loss due to the theft? Explain.

Accepted Answer

The answer of On an automated teller machine (ATM)belonging to...

Exam 25: Checks and Banking in the Digital Age

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​

Drew signs a check "pay to the order of East State University" drawn on Drew's account in Fidelity Bank to pay her tuition.Drew is​

Albert buys a surround sound system from his neighbor George at George's garage sale.Albert writes George a check for $250 for the sound system.George is​

Any local check deposited must be available for withdrawal by check or as cash within one business day from the date of deposit.

A customer can escape liability for failing to notify the bank of forged or altered checks when the customer can prove that the bank was negligent.

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

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

Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service.This is​

Gillian writes a check to Harris as payment for a video game player but soon discovers the player is broken.She goes to the drawee bank and orally authorizes Ilene,a bank officer,to stop payment on the check.This order is valid for​

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

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

Drew signs a check "pay to the order of East State University" drawn on Drew's account in Fidelity Bank to pay her tuition.Drew is

Albert buys a surround sound system from his neighbor George at George's garage sale.Albert writes George a check for $250 for the sound system.George is

Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service.This is

Gillian writes a check to Harris as payment for a video game player but soon discovers the player is broken.She goes to the drawee bank and orally authorizes Ilene,a bank officer,to stop payment on the check.This order is valid for