TRUE OR FALSE QUESTIONS:

1. Knowing that an instrument has been dishonored puts a holder on notice, and he or she cannot become an HDC.

2. Generally, no one is liable on an instrument unless his or her signature appears on it.

3. Warranty liability is subject to the same conditions of proper presentment, dishonor, and notice of dishonor as signature liability.

4. All funds deposited in all bank accounts must be available for withdrawal no later than the next business day.

5. A forged drawer’s signature on a check is effective as the signature of the person whose name is signed.

6.  If a bank fails to honor a customer’s stop-payment order, it may be liable to the customer for more than the amount of the loss suffered by the drawer because of the wrongful payment.