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cheeseman_buslaw7_tif_25

cheeseman_buslaw7_tif_25 - 25 CHECKS,THEBANKINGSYSTEM...

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1) When a customer makes a deposit into the bank, the customer is the debtor and the bank is the creditor. Answer: FALSE Diff: 1 Topic: The Bank - Customer Relationship 2) Bank deposits and collections are covered under Article 3 of the Uniform Commercial Code. Answer: FALSE Diff: 1 Topic: The Bank - Customer Relationship 3) Electronic Funds Transfers are covered under Article 4A of the Uniform Commercial Code. Answer: TRUE Diff: 1 Topic: The Bank - Customer Relationship 4) As a holder, the payee of a check can either demand payment or indorse the check to another person. Answer: TRUE Diff: 1 Topic: Ordinary Checks 5) Checks that have more than one indorser have no validity. Answer: FALSE Diff: 1 Topic: Ordinary Checks 6) The draw is the customer who maintains the checking account. Answer: FALSE Diff: 2 Topic: Parties to a Check 23 CHECKS, THE BANKING SYSTEM,  AND E-MONEY 25
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7) The payee is the bank on which the check is drawn. Answer: FALSE Diff: 2 Topic: Parties to a Check 8) The person to whom the check is indorsed is the indorsee. Answer: TRUE Diff: 1 Topic: Indorsement of a Check 9) A payee has the right to demand payment of the check. Answer: TRUE Diff: 1 Topic: Indorsement of a Check 10) With a certified check, the certification expires when the check becomes stale. Answer: FALSE Diff: 1 Topic: Special Types of Checks 11) The drawer is discharged from liability on a check upon certification by the drawee bank if presented by the drawer for certification, but not if presented by the payee. Answer: FALSE Diff: 2 Topic: Special Types of Checks 12) The major purpose of certified cashier's and traveler's checks is to make the bank primarily liable, so third parties will be more willing to accept the checks. Answer: TRUE Diff: 1 Topic: Special Types of Checks 13) The drawee bank is not obligated to certify a check. Answer: TRUE Diff: 1 Topic: Special Types of Checks 24
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14) The issuing bank serves as both the drawer and drawee of a cashier's check. Answer: TRUE Diff: 2 Topic: Special Types of Checks 15) A traveler's check becomes a negotiable instrument when it is signed the first time by the purchaser. Answer: FALSE Diff: 1 Topic: Special Types of Checks 16) Notifying a bank within 2 days of discovering a lost debit card limits liability to $50. Answer: TRUE Diff: 1 Topic: Special Types of Checks 17) If the drawee's bank certifies a check, the drawer is discharged from liability on the check. Answer: TRUE Diff: 2 Topic: Special Types of Checks 18) The Electronic Fund Transfer Act regulates consumer electronic funds transfers. Answer: TRUE Diff: 1 Topic: Internet Law Online Commerce 19) If a customer notifies the bank within 2 days of learning that his or her debit card has been lost or stolen, the customer is liable for only $50 of unauthorized use. Answer: TRUE Diff: 2 Topic: Internet Law Online Commerce 20) Once a check becomes stale, the bank is no longer obligated to pay it.
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