Exam 22: Banking System and Electronic Financial Transactions

To require a bank to abide by a postdated check,the drawer must give a separate written notice to the bank,describing the check with reasonable certainty.

Banks are obligated to certify all checks.

Which of the following statements is true of certified checks?

The bank where the payee or holder has an account is called the ________.

Which of the following is implied when a bank certifies a check?

A bank that pays a stale check in good faith is not allowed to charge the drawer's account.

The bank where the drawer has a checking account and on which a check is drawn is called a depository bank.

A check that has been outstanding for less than three months is called a stale check.

The Dodd-Frank Wall Street Reform and Consumer Protection Act created the Bureau of Consumer Financial Protection.

The party to whom a check is written is called the ________.

When is a check said to be finally paid?

Mrs.Dawson wrote a check to Kevin for $50 on New Year's Day for clearing the snow from her driveway on Christmas Eve.When Kevin tries to cash the check at Mrs.Dawson's bank,however,he is told that the check is stale.Which of the following is the most likely reason for Mrs.Dawson's check being dishonored by the bank?

________ of the Uniform Commercial Code establishes the rules and principles that regulate check-like accounts offered by financial institutions,other than banks.

A cashier's check is a single-party check.

In which of the following cases is a bank obliged to file a Currency Transaction Report (CTR)with the Internal Revenue Service?

A written stop-payment order is effective for one year.

Which of the following is one of the provisions of the Electronic Funds Transfer Act and Regulation E of the Federal Reserve Board?

Which of the following is one of the provisions of Article 4 of the Uniform Commercial Code?

Timothy is owed $1,000 by Greg,who gives him a check to repay the amount.When Timothy presents it at Greg's bank five months later,however,the bank refuses to pay the check.The bank was willing to act in good faith,but is not liable for the dishonor of the check.Which of the following,if true,would explain the dishonor of the check by Greg's bank?

The drawer of the check is the bank on which a check is drawn.