Question 1

An objective of the Check 21 Act is to:

Accepted Answer

A)  require banks to accept checks in electronic form, thereby reducing paperwork. 
B)  make the check collection process faster by transferring files digitally. 
C)  enhance fraud detection. 
D)  All of these are objectives. 
E)  Only to make the check collection process faster by transferring files digitally and to enhance fraud detection. 
A)  require banks to accept checks in electronic form, thereby reducing paperwork. 
B)  make the check collection process faster by transferring files digitally. 
C)  enhance fraud detection. 
D)  All of these are objectives. 
E)  Only to make the check collection process faster by transferring files digitally and to enhance fraud detection.

Question 2

When a payor bank gets an item payable from a customer's account with insufficient funds, the bank may:

Accepted Answer

A)  dishonor the item and return it. 
B)  pay the item and charge it to the customer's account even though an overdraft is created. 
C)  Either may happen. 
D)  Neither is allowed. 
A)  dishonor the item and return it. 
B)  pay the item and charge it to the customer's account even though an overdraft is created. 
C)  Either may happen. 
D)  Neither is allowed.

Question 3

The Competitive Equality Banking Act:

Accepted Answer

A)  includes a requirement that collecting banks give provisional credit to its subagents. 
B)  allowed intermediary banks to become clearinghouses. 
C)  has expedited the availability of funds. 
D)  None of these. 
A)  includes a requirement that collecting banks give provisional credit to its subagents. 
B)  allowed intermediary banks to become clearinghouses. 
C)  has expedited the availability of funds. 
D)  None of these.

Question 4

An oral stop payment order is binding on the drawee bank for 14 calendar days.

Accepted Answer

A) True 
 B)False

Question 5

Congress enacted the Truth in Savings Act which requires all depositary banks to disclose in great detail to consumers the terms and conditions of their deposit accounts.

Accepted Answer

A) True 
 B)False

Question 6

A critical issue in banking law is at what point an item is finally paid.

Accepted Answer

A) True 
 B)False

Exam 27: Bank Deposits, Collections, and Funds Transferspart Vi: Agency

An objective of the Check 21 Act is to:

When a payor bank gets an item payable from a customer's account with insufficient funds, the bank may:

The Competitive Equality Banking Act:

An oral stop payment order is binding on the drawee bank for 14 calendar days.

Congress enacted the Truth in Savings Act which requires all depositary banks to disclose in great detail to consumers the terms and conditions of their deposit accounts.

A critical issue in banking law is at what point an item is finally paid.

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

Filters