Checks and Banking in the Digital Age

Which of the following is an instrument where a bank serves as both the drawer and the drawee, and it is considered a negotiable instrument upon issue?

If a drawee bank wrongfully fails to honor a check written by its customer, under what theory is the bank liable for damages?

What is the maximum period an oral stop-payment order is binding on a bank unless it is confirmed in writing?

When a bank pays a check on which the drawer's signature has been forged, who generally bears the loss?

What is the name of the federal law that created the substitute check as a new negotiable instrument to facilitate electronic check processing?

According to the Expedited Funds Availability Act, what is the maximum amount of a day's local check deposits that must be available for withdrawal by 5:00 PM on the next business day, in addition to the first 100 dollars?

What is the absolute time limit for a customer to report a check with their own forged signature to the bank, after which the bank is relieved of liability regardless of care exercised?

A bank that pays a customer's check bearing a forged indorsement must typically take what action regarding the customer's account?

A customer writes a check for 11 dollars, but it is altered to 111 dollars and paid by the bank. Assuming the customer was not negligent, for what amount is the bank responsible?

Under the Electronic Fund Transfer Act (EFTA), what is the maximum liability for a consumer if their debit card is lost or stolen and they notify the bank within two days of learning of the loss?

What is the primary characteristic of a certified check?

A bank receives a check for payment on a customer's account that contains insufficient funds. Which of the following is a valid option for the bank?

A customer gives their bank a written stop-payment order on a check. How long is this written order effective?

Under what circumstance can a bank be held liable for paying a postdated check before its stated date?

What is the term for the first bank to receive a check for payment in the collection process?

In the bank-customer relationship, when a customer deposits cash into their checking account, what is the resulting legal relationship?

Even when a bank knows of a customer's death, it can pay or certify checks drawn on or before the date of death for how many days after the date of death?

Which of the following is NOT one of the four most common types of EFT systems used by bank customers as described in the text?

If a bank customer fails to report a series of forgeries by the same wrongdoer, the bank's liability is discharged for all forged checks it pays after what time period from when the first statement was made available?

What is the legal effect on a check once it has been certified by a bank?

What is the time frame after which an uncertified check is considered a 'stale check' by commercial banking practice?

What is the primary purpose of the Check 21 Act?

If a customer's debit card is lost and they fail to report it within two days but do report it within sixty days of the statement showing unauthorized use, what is their maximum liability under EFTA?

In the check collection process, what is the role of a payor bank?

What does it mean if a bank uses 'deferred posting'?

Which of the following is a legal right a customer does NOT have when placing a stop-payment order?

In a dispute over a forged drawer's signature, if a customer proves the bank was also negligent, what is the likely outcome?

What is the absolute time limit for a customer to report a forged indorsement on a check?

A person who encodes information on a check for electronic presentment makes a warranty to subsequent banks that the information is what?

Which of the following describes the time frame for availability of funds for nonlocal checks under the Expedited Funds Availability Act?

An item that is payable by the depositary bank that receives it is known as what?

A customer is liable for the full amount of an overdraft in their joint account under which condition?

What is the legal consequence if a bank pays a check over a customer’s properly instituted stop-payment order?

When a bank sends monthly statements but does not include the original cancelled checks, what is it required to provide?

Under the EFTA, a consumer can stop a preauthorized payment for a utility bill if they notify the financial institution at least how many days before the scheduled transfer?

What is the penalty for a bank that fails to investigate a consumer's error claim in good faith under the EFTA?

What must be included on every substitute check?

Which type of bank in the collection chain is defined as any bank handling a check for collection except the payor bank?

The Truth-in-Savings Act (TISA) requires banks to pay interest on what basis?

What is the consequence for a customer who wrongfully stops payment on a check?

If a bank retains the original canceled checks, for how long must it keep them or legible copies?

Which term describes a system where funds are transferred electronically between commercial parties?

What is the time limit for a bank to investigate a consumer's reported error on a monthly statement under the EFTA?

What is the primary difference between a cashier's check and a teller's check?

The bank's 'midnight deadline' for passing a check on in the collection chain refers to midnight of what day?

If a bank wrongfully dishonors a cashier's check, what can the holder recover from the bank?

Which federal act governs consumer fund transfers?

Under the Expedited Funds Availability Act, when must funds from a deposited government check be available?

What is the legal status of a check presented for payment more than six months after its date?

For an EFT transaction to be considered unauthorized under the EFTA, which of the following conditions must be met?