Solved

If a Bank Is Presented with Four Different Checks on the Same

Question 27

Multiple Choice
If a bank is presented with four different checks on the same day,at the same time,and the total sum of the four checks exceeds the amount of money on deposit,then the bank:

If a bank is presented with four different checks on the same day,at the same time,and the total sum of the four checks exceeds the amount of money on deposit,then the bank:


A) must honor all four checks thereby creating an overdraft situation which the bank can collect with the next deposit or by going directly to the customer.
B) must dishonor all four checks because if the bank honors one check, it must honor all four checks.
C) must honor the first check to be presented even if it was only seconds before the next three are presented.
D) has free rein in choosing which checks to pay and which checks to bounce, if the bank chooses not to create an overdraft.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents