Exam 25: Banking System and Electronic Financial Transactions

If there are major failures of several large banks or many small banks,and the Federal Deposit Insurance Corporation (FDIC)insurance fund is insufficient to cover all of the depositors' losses,which of the following bodies is responsible for paying the depositors money owed by the FDIC?

Greg owes Timothy $1,000 and 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?

Article 4A of the Uniform Commercial Code governs commercial and consumer wire transfers.

The deferred posting rule allows banks to fix an afternoon hour of 2:00 P.M.or later as a cutoff hour for the purpose of processing checks and deposits.

Under UCC guidelines,to require a bank to abide by a postdated check,the drawer must give separate written notice to the bank,describing the check with reasonable certainty and notifying the bank not to pay the check until the date on the check.

The check collection process,which may involve multiple banks,is governed by Revised Article 3 of the UCC.

Checks are the most common form of negotiable instruments used in the United States.

Which of the following is one of the principal wire payment systems in use in the United States?

Which of the following is a provision of Article 4 of the Uniform Commercial Code?

If a customer notifies the issuing bank within two days of learning that his or her debit card has been lost or stolen,the customer is liable for only $100 for unauthorized use.

Article 3 of the Uniform Commercial Code establishes the ________.

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

The Federal Deposit Insurance Corporation was created under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Instead of depositing an "on them" check for collection,a depositor can physically submit the check for payment at the payer bank.This is called ________.

The Uniform Commercial Code places the risk of loss of an incomplete item on the drawee.

The federal Currency Reporting Law requires financial institutions and other entities to file a Currency Transaction Report (CTR)with the Internal Revenue Service (IRS)in the event of the detection of suspected criminal activity by bank customers involving a financial transaction of $1,000 or more in funds.

If a checking account customer fails to report a series of forgeries or alterations by the same wrongdoer on the same account within 30 days from receiving the monthly statement of account,then the bank is discharged from liability on all similar forged or altered checks after that date and prior to notification.

In the case of presentment across the counter,the payer bank has six banking days to dishonor the check.

A check that has been modified without authorization and thus modifies the legal obligation of a party is known as a(n)________.

The ________ is a federal statute,enacted by the Congress in 2010,that reorganizes federal government supervision of the banking system,regulates previous unregulated financial products and institutions,and adds a new consumer protection agency to protect consumers from abusive lending and banking practices.