Question 1

Cornucopia Bank receives a check drawn on the account of Get-Rich Industries,Inc. ,one of the bank's customers,at 3 p.m.Friday.Harry,the pre?senter of the check,is not one of the bank's customers.The bank uses de?ferred posting with a 2 p.m.cutoff hour.If it decides to dis?honor the check,it must do so by midnight

Accepted Answer

A)  Saturday.
B)  Sunday.
C)  Monday.
D)  Tuesday.E) None of the above
F) All of the above

Question 2

Fact Pattern 27-2B 
Thom draws a check,on his account in State Bank in New York,payable to Digital Computers,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 27-2B.When Digital's bank received the check,it was required to pass it on

Accepted Answer

A)  before midnight of the next banking day.
B)  before midnight of the next day,whether or not it was a "banking" day.
C)  before noon of the next banking day.
D)  within five business days.E) A) and B)
F) A) and D)

Question 3

Daria writes a check for $100 drawn on Estimable Bank and presents it to Fast Cash,Inc. ,for payment.If the check is not backed by sufficient funds,Daria may be prosecuted for

Accepted Answer

A)  forgery.
B)  fraud.
C)  negligence.
D)  nothing.E) A) and C)
F) All of the above

Question 4

Joy steals a check from Kyle,forges his signature,and transfers the check to Loco Loans,Inc. ,for value.Unaware that the signature is not Kyle's,Loco Loans presents the check to Metro Bank,the drawee,which cashes the check.Kyle discovers the forgery and insists that Metro recredit his account.Can Metro refuse? If not,from whom can the bank recover?

Accepted Answer

Metro cannot refuse to recredit Kyle's a...

Question 5

Whenever a bank-customer relationship is established,certain contractual rights and duties arise.

Accepted Answer

A) True 
 B)False

Question 6

A forged signature on a check has no legal effect as the signature of a drawer.

Accepted Answer

A) True 
 B)False

Question 7

London knowingly divulges to BreakingNews.com information about Neandro's e-money payments to Oracle Oil Corporation without the consent of Neandro or Oracle.London may be in violation of federal law

Accepted Answer

A)  if the e-payments were in electronic storage at the time.
B)  if the e-payments were legitimate.
C)  if the e-payments are not represented by physical evidence.
D)  under none of these circumstances.E) A) and B)
F) A) and C)

Question 8

A bank is not obligated to pay an uncertified check presented more than six months from its date.

Accepted Answer

A) True 
 B)False  True

Question 9

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

Accepted Answer

A)  the Federal Reserve will reimburse all parties for their costs.
B)  the loss will be covered by Verity's insurance policy.
C)  Uriel will be liable for the amount.
D)  Verity will have to recredit Uriel's account.E) A) and D)
F) None of the above

Question 10

Brendan signs a check "pay to the order of City College Bookstore" drawn on his account in Delmar Bank to pay for his current semester's textbooks.The bookstore deposits the check in its account in Evergreen Bank.Like most checks,this check is

Accepted Answer

A)  a one-party instrument.
B)  a four-party instrument.
C)  a three-party instrument.
D)  a two-party instrument.E) A) and B)
F) A) and C)

Question 11

Any local check deposited must be avail?able for withdrawal by check or as cash within not more than five business days from the date of deposit.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  attorney and client.
B)  creditor and debtor.
C)  guardian and ward.
D)  trustee and beneficiary.E) A) and B)
F) A) and C)

Question 13

UCC Articles 3 and 4 govern issues relating to checks.

Accepted Answer

A) True 
 B)False  True

Question 14

When a customer's negligence contributes to a forgery,the bank normally is obligated to recredit the customer's account for the amount of the check.

Accepted Answer

A) True 
 B)False

Question 15

A customer has a right to stop payment on a check that has been certified.

Accepted Answer

A) True 
 B)False

Question 16

The bank on which a check is drawn is the depositary bank.

Accepted Answer

A) True 
 B)False

Question 17

A check is a special type of draft.

Accepted Answer

A) True 
 B)False

Question 18

A drawer must have a valid legal ground for issuing a stop-payment order,or the holder can sue the drawer for payment.

Accepted Answer

A) True 
 B)False

Question 19

Jen signs a check "pay to the order of Key" drawn on Jen's account in Lakeland Bank to buy Key's car.Jen asks Lakeland Bank to indicate on the face of the check that it will accept it when Key presents it for payment.If the bank agrees,this will be

Accepted Answer

A)  a cashier's check.
B)  a certified check.
C)  a trade acceptance.
D)  a traveler's check.E) B) and D)
F) None of the above B

Question 20

Clay issues a check payable to Discount Mart.Ernestina,Discount's cashier,forges the store's indorsement and deposits the check in her bank ac?count.Clay's bank,First Friendly Bank,pays the check.Clay can recover from

Accepted Answer

A)  Ernestina,who can recover from First Friendly Bank.
B)  First Friendly Bank,which cannot recover from Ernestina.
C)  First Friendly Bank,which can recover from Ernestina.
D)  no one.E) A) and B)
F) A) and C)

Exam 27: A: Checks,the Banking System,and E-Money

Correct Answer
verified

Correct Answer
verified

Daria writes a check for $100 drawn on Estimable Bank and presents it to Fast Cash,Inc. ,for payment.If the check is not backed by sufficient funds,Daria may be prosecuted for

Correct Answer
verified

Correct Answer
verified
Metro cannot refuse to recredit Kyle's a...
View Answer

Whenever a bank-customer relationship is established,certain contractual rights and duties arise.

Correct Answer
verified

A forged signature on a check has no legal effect as the signature of a drawer.

Correct Answer
verified

London knowingly divulges to BreakingNews.com information about Neandro's e-money payments to Oracle Oil Corporation without the consent of Neandro or Oracle.London may be in violation of federal law

Correct Answer
verified

A bank is not obligated to pay an uncertified check presented more than six months from its date.

Correct Answer
verified
True

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

Correct Answer
verified

Brendan signs a check "pay to the order of City College Bookstore" drawn on his account in Delmar Bank to pay for his current semester's textbooks.The bookstore deposits the check in its account in Evergreen Bank.Like most checks,this check is

Correct Answer
verified

Any local check deposited must be avail?able for withdrawal by check or as cash within not more than five business days from the date of deposit.

Correct Answer
verified

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

Correct Answer
verified

UCC Articles 3 and 4 govern issues relating to checks.

Correct Answer
verified
True

When a customer's negligence contributes to a forgery,the bank normally is obligated to recredit the customer's account for the amount of the check.

Correct Answer
verified

A customer has a right to stop payment on a check that has been certified.

Correct Answer
verified

The bank on which a check is drawn is the depositary bank.

Correct Answer
verified

A check is a special type of draft.

Correct Answer
verified

A drawer must have a valid legal ground for issuing a stop-payment order,or the holder can sue the drawer for payment.

Correct Answer
verified

Jen signs a check "pay to the order of Key" drawn on Jen's account in Lakeland Bank to buy Key's car.Jen asks Lakeland Bank to indicate on the face of the check that it will accept it when Key presents it for payment.If the bank agrees,this will be

Correct Answer
verified
B

Clay issues a check payable to Discount Mart.Ernestina,Discount's cashier,forges the store's indorsement and deposits the check in her bank ac?count.Clay's bank,First Friendly Bank,pays the check.Clay can recover from

Correct Answer
verified

Exam 27: A: Checks,the Banking System,and E-Money

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Daria writes a check for $100 drawn on Estimable Bank and presents it to Fast Cash,Inc. ,for payment.If the check is not backed by sufficient funds,Daria may be prosecuted for

Correct AnswerverifiedShow Answer

Correct AnswerverifiedMetro cannot refuse to recredit Kyle's a...View AnswerShow Answer

Whenever a bank-customer relationship is established,certain contractual rights and duties arise.

Correct AnswerverifiedShow Answer

A forged signature on a check has no legal effect as the signature of a drawer.

Correct AnswerverifiedShow Answer

London knowingly divulges to BreakingNews.com information about Neandro's e-money payments to Oracle Oil Corporation without the consent of Neandro or Oracle.London may be in violation of federal law

Correct AnswerverifiedShow Answer

A bank is not obligated to pay an uncertified check presented more than six months from its date.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

Brendan signs a check "pay to the order of City College Bookstore" drawn on his account in Delmar Bank to pay for his current semester's textbooks.The bookstore deposits the check in its account in Evergreen Bank.Like most checks,this check is

Correct AnswerverifiedShow Answer

Any local check deposited must be avail?able for withdrawal by check or as cash within not more than five business days from the date of deposit.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

UCC Articles 3 and 4 govern issues relating to checks.

Correct AnswerverifiedTrue

When a customer's negligence contributes to a forgery,the bank normally is obligated to recredit the customer's account for the amount of the check.

Correct AnswerverifiedShow Answer

A customer has a right to stop payment on a check that has been certified.

Correct AnswerverifiedShow Answer

The bank on which a check is drawn is the depositary bank.

Correct AnswerverifiedShow Answer

A check is a special type of draft.

Correct AnswerverifiedShow Answer

A drawer must have a valid legal ground for issuing a stop-payment order,or the holder can sue the drawer for payment.

Correct AnswerverifiedShow Answer

Jen signs a check "pay to the order of Key" drawn on Jen's account in Lakeland Bank to buy Key's car.Jen asks Lakeland Bank to indicate on the face of the check that it will accept it when Key presents it for payment.If the bank agrees,this will be

Correct AnswerverifiedB

Clay issues a check payable to Discount Mart.Ernestina,Discount's cashier,forges the store's indorsement and deposits the check in her bank ac?count.Clay's bank,First Friendly Bank,pays the check.Clay can recover from

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Metro cannot refuse to recredit Kyle's a...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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B

Correct Answer
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