Exam 28: Banking in the Digital Age

Dalton presents an uncertified check for payment more than six months after its date. The check was drawn by Emma on her account in First Bank. If the bank follows the usual banking practice in such a case, it will​

A customer must examine a bank statement and report any discovered forged signature to recover from the bank for the forgery.

The first bank to receive a check for payment is the intermediary bank.

Smart cards carry and process security programming.

When a bank draws a check on itself, the check is called a certified check.

Riley pays State Bank $500 plus a service fee to draw a check on itself payable to Torque Plumbing. The party that is responsible for paying the check is​

E-money replaces physical cash with virtual cash.

A bank that encodes information on an item after its issue warrants to any subsequent bank that the information is correct.

A forged signature is effective as the signature of a drawer to the extent that is resembles the drawer's actual signature.

Bea writes a check for $100 drawn on Savers Credit Union and presents it to Timpani Jewelers for payment. If the check is not backed by sufficient funds, Bea may be prosecuted for​

Commercial banking practices consider a check that has been outstanding for three months to be a stale check.

Only a customer or a person authorized to draw on an account can order a bank not to pay a check when it is presented for payment.

Each bank in a collection chain must pass a check on before midnight of the day of its receipt.

A substitute check is a paper reproduction of an original check without all of the information required on checks for automated processing.

A check is a special type of draft.

The death of a customer immediately revokes a bank's authority to pay an item.

Dhani signs a check "pay to the order of Eton" drawn on Dhani's account in Fidelity Guaranty Bank and dates the check "May 1." Eton presents the check to the bank for payment on December 15. This is​

Daisy signs a check "pay to the order of Ewan" drawn on Daisy's account in Finance Bank. Graham forges Ewan's indorsement. Finance Bank pays the check. Most likely​

Fact Pattern 28-1 Kelly takes her car to Auto Repair Service, which repairs the car and bills Kelly for $500. She writes out a check drawn on Choice Bank, but later, believing that Auto Repair did not fix the car properly, issues a stop-payment order. -Refer to Fact Pattern 28-1. ​If Choice pays the check, the bank

A written stop payment order is only valid for thirty days.