Question 1

Which of the following is defined by the UCC as a change,without consent,that nullifies the obligation of a party to the instrument?

Accepted Answer

A)   An alteration.
B)   A defacement.
C)   A material addition.
D)   A transformation.
E)   A reformation.F) All of the above
G) A) and D)

Question 2

Which of the following is the bank ultimately responsible for granting funds for a check?

Accepted Answer

A)   Depositary.
B)   Payor.
C)   Collecting.
D)   Intermediary.
E)   Transferring.F) C) and E)
G) None of the above

Question 3

The UCC states that a customer can postdate a check and that the customer has no obligations to give the bank notice of the postdated check.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following would be stored electronically on microchips,magnetic strips,or other computer media and would allow for the elimination of physical currency?

Accepted Answer

A)   Electronic funds.
B)   Electronic medium.
C)   Digital cash.
D)   Digital resources.
E)   Electronic resources.F) A) and E)
G) C) and D)

Question 5

Which of the following is the party ordered to pay on a draft?

Accepted Answer

A)   The drawer.
B)   The drawee.
C)   The payee.
D)   The draftor.
E)   The draftee.F) A) and E)
G) B) and E)

Question 6

Which of the following is true regarding Trevor's statement that the bank's only choice was to dishonor the check?

Accepted Answer

A)   Trevor is correct.
B)   Trevor is incorrect because under the UCC, the bank could have created an overdraft by paying the check and later charging the account the amount short.
C)   Trevor is incorrect because under the UCC, the bank could have created a subsequent draft by paying the check, and the bank would then have needed to seek the customer's permission to charge his account the amount short.
D)   Trevor is incorrect because under the UCC, the bank could have created a secondary draft by paying the check and charging the account the amount short.
E)   Trevor is incorrect because under the UCC, the bank could have created an excessive draft by paying the check and closing the account at which point, the customer would be free to open a new account.F) B) and C)
G) A) and C)

Question 7

Which of the following is true regarding what a bank may do to offer overdraft protection to customers?

Accepted Answer

A)   In regard to overdraft protection a bank may (1)  credit a customer's checking account although federal law prohibits charging for this service, (2)  link a checking account to the customer's savings account to cover the overdraft, and (3)  link a checking account to the customer's credit card to cover the overdraft.
B)   In regard to overdraft protection a bank may (1)  credit a customer's checking account and charge for this service, (2)  link a checking account to the customer's savings account to cover the overdraft, and (3)  link a checking account to the customer's credit card to cover the overdraft.
C)   In regard to overdraft protection a bank has only two options (1)  link a checking account to the customer's savings account to cover the overdraft, and (2)  link a checking account to the customer's credit card to cover the overdraft.
D)   Under federal law, the only option open to a bank in the event of a customer's overdraft is to credit the customer's account although no charge may be made for the service.
E)   Under federal law, the only option open to a bank in the event of a customer's overdraft is to credit the customer's account, and a charge may be made for the service.F) B) and E)
G) A) and E)

Question 8

Which of the following is a bank,other than a payor bank,handling the check at any point from the time the check is deposited to the time it reaches the payor bank?

Accepted Answer

A)   Depositary.
B)   Acknowledging.
C)   Collecting.
D)   Intermediary.
E)   Transferring.F) B) and C)
G) B) and D)

Question 9

A[n] _____________ check is a check that is drawn by one bank and is usually drawn on another bank.

Accepted Answer

A)   Cashier's
B)   Certified
C)   Teller's
D)   Acknowledged
E)   TransferableF) B) and C)
G) C) and E)

Exam 29: Checks and Electronic Fund Transfers

The UCC states that a customer can postdate a check and that the customer has no obligations to give the bank notice of the postdated check.

Correct Answer
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Which of the following is true regarding what a bank may do to offer overdraft protection to customers?

Correct Answer
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Which of the following is true regarding Trevor's statement that the bank's only choice was to dishonor the check?

Correct Answer
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Which of the following is defined by the UCC as a change,without consent,that nullifies the obligation of a party to the instrument?

Correct Answer
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Which of the following is a bank,other than a payor bank,handling the check at any point from the time the check is deposited to the time it reaches the payor bank?

Correct Answer
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Which of the following would be stored electronically on microchips,magnetic strips,or other computer media and would allow for the elimination of physical currency?

Correct Answer
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Which of the following is the bank ultimately responsible for granting funds for a check?

Correct Answer
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A[n] _____________ check is a check that is drawn by one bank and is usually drawn on another bank.

Correct Answer
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Which of the following is the party ordered to pay on a draft?

Correct Answer
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Exam 29: Checks and Electronic Fund Transfers

The UCC states that a customer can postdate a check and that the customer has no obligations to give the bank notice of the postdated check.

Correct AnswerverifiedShow Answer

Which of the following is true regarding what a bank may do to offer overdraft protection to customers?

Correct AnswerverifiedShow Answer

Which of the following is true regarding Trevor's statement that the bank's only choice was to dishonor the check?

Correct AnswerverifiedShow Answer

Which of the following is defined by the UCC as a change,without consent,that nullifies the obligation of a party to the instrument?

Correct AnswerverifiedShow Answer

Which of the following is a bank,other than a payor bank,handling the check at any point from the time the check is deposited to the time it reaches the payor bank?

Correct AnswerverifiedShow Answer

Which of the following would be stored electronically on microchips,magnetic strips,or other computer media and would allow for the elimination of physical currency?

Correct AnswerverifiedShow Answer

Which of the following is the bank ultimately responsible for granting funds for a check?

Correct AnswerverifiedShow Answer

A[n] _____________ check is a check that is drawn by one bank and is usually drawn on another bank.

Correct AnswerverifiedShow Answer

Which of the following is the party ordered to pay on a draft?

Correct AnswerverifiedShow Answer

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