1) Over the course of the semester, Betsy used her roommate Kathryn's bank debit card to make $200 worth of purchases without Kathryn's permission or knowledge. Kathryn's liability is:

A. Nothing, because she did not give Betsy permission to use the card.

B. Only $50, because she did not give Betsy permission to use the card.

C. Only $50, provided Kathryn read her bank statements and notified her card issuer of the unauthorized use within the proper time frame under the EFTA.

D. The full $200, because Kathryn should have done a better job of protecting her debit card from unauthorized use.

2) Under the new Article 4 (UCC), post-dated checks:

A. now invalid and create no obligation to pay on the bank's part.

B. Are not properly payable until the date on the check.

C. May be paid before the date on the check unless the customer has given notice to the contrary.

D. Must be paid before the date on the check.

3)Which of the following istrueregarding an indorser's liability on a note?

A.A holder can proceed directly against the indorser without first presenting the note to the maker.

B. An indorsement without recourse by the indorser will not disclaim liability against a holder who takes in good faith and for value.

C. For the indorser to be liable there must be presentment to the maker, dishonor by the maker, and notice to the indorser.

D. For the indorser to be liable there need only be presentment to the maker and dishonor by the maker.

4) Tom Thief steals Dave's checkbook, writes out a check for $1000, forges Dave's signature, and gets payment from Tom's bank. The bank paid in good faith. Who is liable to the bank for the $1000 in this case?

A. Tom

B. Dave

C. Both Tom and Dave

D. Neither Tom nor Dave

5) Which of the following is true regarding a drawee's liability on a check or a draft?

A. The drawee is primarily liable in all cases.

B. The drawee is secondarily liable because the holder must first proceed against the drawer.

C. The drawee is primarily liable if it accepts (certifies) a check.

D. None of the above.