1_A cashier's check is an instrument in which a bank draws a check on itself.

True

False

2_Certified checks are instruments that have been accepted for payment by the institutions on which they are drawn.

True

False

3_A bank is subject to a civil suit if its customer writes a check for insufficient funds.

True

False

4_A bank has no right to charge its customer's account for the amount of a stale check.

True

False

5_A drawer of a check is liable to the holder of a check if it is not honored.

True

False

6_A drawee bank may be liable to its customer if it dishonors its customer's check when there are sufficient funds in the account for payment.

True

False

7_A bank is obligated to pay an uncertified check presented less than six months from its date.

1. True
2. False

8_An oral stop payment order is valid for 30 days.

True

False

9_Banks are requires to constantly monitor their customers life and competence.

True

False

10_A bank can recover from a holder who cashes a check bearing a forged drawer's signature if the holder knew of the forgery.

True

False

11_A bank must recredit a customer's account when it pays a check with the customer's forged signature even if the customer's negligence substantially contributed to the forgery.

True

False

12_A bank must normally re-credit a customer's account when it pays a check with a forged indorsement.

True

False

13_A person who signs a check and leaves the dollar amount for someone else to fill-in can recover from the bank whatever amount exceeds the amount the person intended the check to cover.

True

False

14_Generally the funds represented by a deposited "local check" are not available for withdrawal until the next business day.

True

False

15_A bank on whom a check is drawn is a collecting bank.

True

False

16_Deferred posting by a bank is the process of dishonoring a check for insufficient funds.

True

False

17_Point of sale systems are typically used to obtain cash.

True

False

18_Digital Cash consists of funds stored on microchips and other computer aided devices.

True

False

19_A bank that fails to investigate an error and report its conclusion promptly to the customer is in violation of the EFTA.

True

False

20_A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any errors.

True

False

21_A "substitute check" is a new negotiable instrument created to expedite the clearing process for checks.

True

False

22_Use of substitute checks by banks can reduce the "float time" for its customers.

True

False

23_Under the Check Clearing in the 21st Century Act a bank must provide you with all of your original cancelled checks with your monthly bank statement.

True

False

24_If a customer's debit card is lost or stolen or used without their permission or consent, the customer is liable for the full amount of the loss, whereas with a credit card their laiblity is limited to $50.

True

False

25_n most instances a bank is entitled to recover the amount of the loss from a transferor who, by presenting the check for payment warrants that the check has not been materially altered.

True

False