BLAW27 - C hapter 27 Checks and Banking in the Digital Age...

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Chapter 27 Checks and Banking in the Digital Age A1. Rikki signs a check “pay to the order of Scholar University” drawn on  Rikki’s account in State Bank to pay her tuition. Rikki is a. the certifier. b. the drawee. c. the drawer. d. the payee. B1. Ian buys a cell phone in Jiffy Mart, using the means that accounts for  more retail payments than any other. This means of payment is a. a commercial check. b. a debit card. c. a personal check. d. a trade acceptance. A2. Scott presents an instrument that states “pay to the order of Scott” to  Town Bank for payment. This instrument is the most common type of  negotiable instrument, which is a. a certificate of deposit. b. a check. c. a note. d. a trade acceptance. B2. Kris presents an instrument that states “pay to the order of Liv” to  Metro Bank for payment. This is a special type of draft drawn on a  bank, ordering the bank to pay a fixed amount of money on demand.  This is a. a certificate of deposit. b. a check.
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c. a debit card transaction receipt. d. a trade acceptance. A3. 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 a. a cashier’s check. b. a certified check. c. a trade acceptance. d. a traveler’s check. B3. Brendan signs a check “pay to the order of City College Bookstore”  drawn on his account in Delta Bank to pay for his current semester’s  textbooks. The bookstore deposits the check in its account in Eagle  Bank. Like most checks, this check is a. a one-party instrument. b. a four-party instrument. c. a three-party instrument. d. a two-party instrument. A4. First   Community   Bank   agrees   to   accept   a   check   by  setting   aside  sufficient funds to cover the amount. This check is considered a. cashed. b. certified. c. deposited. d. provisionally credited. B4. Jen signs a check “pay to the order of Key” drawn on Jen’s account in  Little Bank to buy Key’s car. Jen asks Little 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 a. a cashier’s check. b. a certified check. c. a trade acceptance. d. a traveler’s check.
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A5. Kip writes a check for $1,000 drawn on Local Bank and presents it to  Mira.  Mira   presents  the  check   for   payment   to   Local   Bank,   which  dishonors it. The party most likely liable to Mira is a. Kip in a civil suit. b.
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This note was uploaded on 09/13/2011 for the course BLAW 4203 taught by Professor Farguson during the Spring '11 term at LSU.

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BLAW27 - C hapter 27 Checks and Banking in the Digital Age...

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