Ch27-TB2-WBL-10e

Ch27-TB2-WBL-10e - Chapter27 Checks,theBanking...

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Chapter 27 Checks, the Banking  System, and E-Money   N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. UCC Articles 3 and 4 govern checks. ANSWER: T PAGE: 536 TYPE: + 2. Certified checks are instruments that have been accepted for payment by  the institutions on which they are drawn. ANSWER: T PAGE: 537 TYPE: = 3. A bank is subject to a civil suit if its customer writes a bad check. ANSWER: F PAGE: 539 TYPE: + 4. Generally, a bank has no obligation to pay a customer’s overdrafts. ANSWER: T PAGE: 539 TYPE: + 15
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16 TEST BANK 2—UNIT FIVE: NEGOTIABLE INSTRUMENTS 5. When a check “bounces,” its holder can resubmit the check later, hoping  that sufficient funds will be available. ANSWER: T PAGE: 539 TYPE: + 6. A bank has no right to charge a customer’s account for the amount of a  stale check. ANSWER: F PAGE: 540 TYPE: N 7. Banks are required to constantly verify the life and competence of their  drawers. ANSWER: F PAGE: 540 TYPE: N 8. A bank is obligated to pay an uncertified check presented less than six  months from its date. ANSWER: T PAGE: 540 TYPE: + 9. An oral stop payment order is valid for thirty days. ANSWER: F PAGE: 540 TYPE: + 10. When a bank pays a check on which the drawer’s signature is forged,  generally the  customer  suffers the loss. ANSWER: F PAGE: 541 TYPE: N 11. A forged signature has no legal effect as the signature of a drawer. ANSWER: T PAGE: 541 TYPE: = 12. A bank must   always   recredit a customer’s account when it pays a check  with the customer’s forged signature. ANSWER: F PAGE: 541 TYPE: + 13. A bank is  never  obligated to recredit a customer’s account when it pays a  check with the customer’s forged signature. ANSWER: F PAGE: 541 TYPE: N
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CHAPTER 27: CHECKS, THE BANKING SYSTEM, AND E-MONEY 17 14. When a bank pays a check on which the drawer’s signature is forged,  generally the  bank  suffers the loss. ANSWER: T PAGE: 541 TYPE: + 15. A customer does not need to examine a bank statement and report his or  her forged signature to recover from the bank for the forgery. ANSWER: F PAGE: 543 TYPE: N
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18 TEST BANK 2—UNIT FIVE: NEGOTIABLE INSTRUMENTS 16. Generally, a cash deposit is not available for withdrawal until the next  business day. ANSWER:
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This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

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Ch27-TB2-WBL-10e - Chapter27 Checks,theBanking...

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