Exam 41: Checks and Electronic Fund Transfers

Salim carelessly makes a check for $100 to Abel in a way that makes it possible for someone to easily alter it. Abel alters the check to read $1,000. Under these circumstances, _____.

Check 21 contains a special refund procedure, called "expedited recredit," for a customer who suffers a loss because of _____ check.

If a bank pays a check after it is given a stop-payment order and has to reimburse its customer for the improperly paid check, _____.

A written stop-payment order is valid for six months, and the customer can extend it for an additional six months by giving the bank instructions in writing to continue the order.

Check 21 is a federal law that is designed to enable banks to collect more checks electronically.

Which of the following is an electronic funds transfer system?

On August 1, 1990, Lisa wrote a check for $100 payable to the order of Marcia, her sister. Marcia misplaced the check and found it in May 1991, and attempted to cash it. Under these circumstances, the _____.

Explain what a stop-payment order is, and explain the legal difference (in terms of time period of effectiveness) between an oral stop-payment request and a written stop-payment request.

Which of the following sources governs the relationship between the depositor and the drawee bank?

A check drawn by a credit union on its account at a bank is an example of a _____ check: