Diane arranged for her bank to wire $40 on the first of each month to Brahma's Music Store.The money was to pay for the rental of a violin.Which statement is correct?

Question

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To stop payment of the transfer, Diane must give oral or written notice up to three business days before the scheduled date. This is because it is a recurring monthly transfer and not a one-time payment. Diane can provide notice to the bank either orally or in writing within three business days before the scheduled date of the transfer. This will allow the bank sufficient time to stop the transfer. Option A is incorrect as it requires advance written notice of one month, which is not true. Option C is also incorrect as Diane only needs to provide notice to the bank and does not require permission from Brahma. Option D is incorrect because Diane has the right to stop payment of the transfer.

Diane Arranged for Her Bank to Wire $40 on the First