Exam 25: Banking System and Electronic Financial Transactions

A check is finally paid when ________.

John writes a check for $100 on his account at the Sacred Heart Bank to repay the $100 he owes Perry.He gives the check to Eliot and tells her to hand it over to Perry.However,Eliot loses the check before she can give it to Perry.Later,John realizes that he had not written Perry's name on the lost check.According to the provisions of the Uniform Commercial Code (UCC),on which of the following parties should the risk of loss of the check be placed?

What are altered checks? What are the actions that a bank can take when it encounters a case of check alteration?

Raj is making a wire transfer for a sum of $1,600 to his friend's checking account.If Raj fails to comply with the rules of the transaction,he would be violating ________ of the Uniform Commercial Code (UCC).

The drawee is the party to whom a check is written.

The ________ is a government agency that insures deposits at most banks and savings institutions in the United States.

If a bank does not honor a check when there are sufficient funds in the drawer's account to pay a properly payable check,it is liable for wrongful dishonor.

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

Which of the following statements is true of certified checks?

Jill Scott is an accountant with Cameron and Associates,a law firm in downtown Seattle.The firm maintains a checking account with Southern Rock Bank for its operating expenses.On the 10th of every month,Jill gets an inventory report from the office manager listing the office supplies that are needed.Jill places the appropriate orders with Office Depot and writes them a check against the office's checking account. Who is the drawee in this banking transaction?

A check that has been outstanding for more than three months is considered stale,and the bank is under no obligation to pay it.

Fabiola is an accountant with Rovers and Associates,a law firm in downtown Memphis.The firm maintains a checking account with Portris Bank for its operating expenses.On the 7th of every month,Fabiola gets an inventory report from the office manager listing the office supplies that are needed.Fabiola places the appropriate orders with Office Depot and writes them a check against the office's checking account. In the above banking transaction,Rovers and Associates is the ________.

A person can purchase a(n)________ from a bank by paying the bank the amount of the check plus a fee for issuing the check.

Briefly explain certified checks.

If the drawer and the payee of a check have accounts at the same bank,the check is called an "on them" item when it is presented for payment by the payee.

Banks in the collection process that are not the depository or payer bank are called ________ banks.

The Pittsburgh Peelers are a professional soccer team playing in Major League Soccer.They recently approached Darth Water,a leading sports-drink manufacturer,to sponsor their team for the upcoming season.Darth Water agrees to sponsor the team for an amount of $1 million,to be paid in installments over the course of the season.Darth Water instructs its bank,Orange County Bank,to wire the funds to Pittsburgh Peelers' bank,the Jersey Shore Bank.Which of the following parties is the originator of the wire transfer in the above case?

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

Describe the principal-agent relationship with respect to checks.

What is the significance of bank statements to an electronic fund transfer customer?