In a check collection process that involves multiple banks, which bank is the first to receive a check?

the depositary bank

the payor bank

the Federal Reserve Bank

the collecting bank

Assessment question

Which of the following are examples of an electronic fund transfer (EFT)?

a transfer of funds through an ATM, a computer, a smart phone, or a paper check

online banking only

a transfer of funds that involves only the Internet

a transfer of funds through an automated teller machine (ATM), a computer, a smart phone, or online banking

Assessment question

The Electronic Fund Transfer Act (EFTA) provides for which of the following? Choose 3 answers.

civil damages only for violations

protection for unauthorized electronic transactions if timely notice is given

that a bank must investigate an EFT complaint by a customer

recovery of damages from a bank for an EFTA violation

Assessment question

Check fraud may occur through which of the following actions? Choose 2 answers.

writing checks on two different banks to cover the float of funds

marking through an incorrect date on a check and writing in another date

forging a signature

overdrawing a checking account, whether intentional or not

Assessment question

The Uniform Commercial Code (UCC) affects a bank's relationship with its customers in which of the following ways? Choose 2 answers.

It allows a bank to refuse to pay a six-month-old check.

It permits a bank to pay an overdraft and charge a fee for the service.

It protects a bank from damages when it wrongfully dishonors an item.

It permits a bank to pay on any altered check.

Assessment question

Which of the following is a duty or obligation imposed on a bank customer by the Uniform Commercial Code (UCC)? Choose 2 answers.

A bank customer must notify the bank of the forgery or alteration of the customer's check.

A bank customer must notify the bank at any time a check is post-dated.

A bank customer must review a bank statement in a reasonable period of time.

A bank customer who wishes to stop payment on a check must order the bank to do so within five days from the date of a check.

Assessment question

Under the Uniform Commercial Code (UCC), when must a depositary bank pass a check on to the next bank in the check collection process?

within 24 hours of the time it received the check for deposit

by midnight of the second banking day in which it received the check

in accordance with its agreement with its customer

by midnight of the next banking day following its receipt

Assessment question

What is the bank called that receives a check from another bank in the check collection process? Choose 2 answers.

intermediary or collecting bank, if it only passes the check on without paying it

drawer bank

depositary bank

payor bank, if it is the last bank in the processing chain

Assessment question

What is a Federal Reserve Bank called that acts as only a clearinghouse during the check collection process?

payor or collecting bank

intermediary or collecting bank

drawee or intermediary bank

depositary or collecting bank

Assessment question

Which article of the Uniform Commercial Code (UCC) governs bank relationships with their customers and other banks?

Article 4

Article 5

Article 9

Article 10