1. A cashier's check is an instrument in which a bank draws a check on itself.
A) True
B) False
2.Certified checks are instruments that have been accepted for payment by the institutions on which they are drawn.
A) True
B) False
3. A bank is subject to a civil suit if its customer writes a check for insufficient funds.
A) True
B) False
4.A bank has no right to charge its customer's account for the amount of a stale check.
A) True
B) False
5. A drawer of a check is liable to the holder of a check if it is not honored.
A) True
B) False
6. A drawee bank may be liable to its customer if it dishonors its customer's check when there are sufficient funds in the account for payment.
A) True
B) False
7. A bank is obligated to pay an uncertified check presented less than six months from its date.
A) True
B) False
8. An oral stop payment order is valid for 30 days.
A) True
B) False
9. Banks are requires to constantly monitor their customers life and competence.
A) True
B) False
10. A bank can recover from a holder who cashes a check bearing a forged drawer's signature if the holder knew of the forgery.
A) True
B) False
11. A bank must recredit a customer's account when it pays a check with the customer's forged signature even if the customer's negligence substantially contributed to the forgery.
A) True
B) False
12. A bank must normally re-credit a customer's account when it pays a check with a forged indorsement.
A) True
B) False
13. A person who signs a check and leaves the dollar amount for someone else to fill-in can recover from the bank whatever amount exceeds the amount the person intended the check to cover.
A) True
B) False
14. Generally the funds represented by a deposited "local check" are not available for withdrawal until the next business day.
A) True
B) False
15. A bank on whom a check is drawn is a collecting bank.
A) True
B) False
16. Deferred posting by a bank is the process of dishonoring a check for insufficient funds.
A) True
B) False
17. Point of sale systems are typically used to obtain cash.
A) True
B) False
18. Digital Cash consists of funds stored on microchips and other computer aided devices.
A) True
B) False
19. A bank that fails to investigate an error and report its conclusion promptly to the customer is in violation of the EFTA.
A) True
B) False
20. A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any errors.
A) True
B) False
21. A "substitute check" is a new negotiable instrument created to expedite the clearing process for checks.
A) True
B) False
22. Use of substitute checks by banks can reduce the "float time" for its customers.
A) True
B) False
23. Under the Check Clearing in the 21st Century Act a bank must provide you with all of your original cancelled checks with your monthly bank statement.
A) True
B) False
24. If a customer's debit card is lost or stolen or used without their permission or consent, the customer is liable for the full amount of the loss, whereas with a credit card their laiblity is limited to $50.
A) True
B) False
25. In most instances a bank is entitled to recover the amount of the loss from a transferor who, by presenting the check for payment warrants that the check has not been materially altered.
A) True
B) False