Question 7 (1 point)

Is the bank permitted to charge interest on overdrafts?

Question 7 options:

	Yes and no formal arrangements are required.
	Yes but only if there is a formal agreement in place.
	No

Question 8 (1 point)

Can a trust account be combined with a personal account?

Question 8 options:

	No
	Yes

Question 9 (1 point)

What is the effect of crossing a cheque

Question 9 options:

	None
	It is a direction of the drawer to the financial institution only to pay the cheque to another financial institution.
	It means the cheque refers to trust money
	It means the cheque has bounced

Question 10 (1 point)

Which of the following is not a potential contract created by a credit card:

Question 10 options:

	Between the merchant acquirer and the merchant
	Between the trustee and the credit card holder
	Between merchant and the cardholder
	Between the issuer and the cardholder which authorises the cardholder to use the cards at authorised merchants

Question 11 (1 point)

A creditor may refuse a conforming tender.

Question 11 options:

	True
	False

Question 12 (1 point)

A travellers cheque is a type of cheque or bill of exchange

Question 12 options:

	False
	True

Question 13 (1 point)

Which of the following is not a party to a bill of exchange

Question 13 options:

	Trustee
	Payee
	Drawer
	Drawee

Question 14 (1 point)

What is the payment method for a contract if none is specified?

Question 14 options:

	Presumption of legal tender.
	The debtor may choose the payment method and this must be accepted by the creditor

Question 15 (1 point)

A drawer of a cheque is not liable on the cheque until it has been presented for payment

Question 15 options:

	True
	False

Question 16 (1 point)

Which of the following best articulates the rule in Claytons Case

Question 16 options:

	The amount first paid into a current account is treated as the amount that is first paid out
	A current account requires an appropriation by the banker
	Trust money must be held in a term deposit
	None of the above.

Question 17 (1 point)

In the event of non payment, the holder of the bill of exchange

Question 17 options:

	Must join a class action against the bank
	May sue on the bill in their own name
	Must sue in tort law

Question 18 (1 point)

Which if the following accounts is considered to be the most common?

Question 18 options:

	Savings accounts
	Current accounts
	Trust accounts
	Term Deposits

Question 19 (1 point)

When is a bill of exchange required to be paid

Question 19 options:

	30 days after the bill is issued
	At time specified or on demand if no time specified.
	On the birthday of the drawee
	90 days after the bill is issued

Question 20 (1 point)

When a cheque is drawn, the drawee bank becomes liable on the cheque

Question 20 options:

	False
	True