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Business Law Study Set 2
Quiz 27: Checks, the Banking System, and E-Money
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Question 41
Multiple Choice
Kip writes a check for $1,000 drawn on Local Bank and presents it to Mira. Mira presents the check for payment to Local Bank, which dis?hon?ors it. The party most likely liable to Mira is
Question 42
Multiple Choice
Dora writes a check for $100 drawn on Eastern Bank and presents it to Fast Cash, Inc., for payment. If the check is not backed by sufficient funds, Dora may be prosecuted for
Question 43
Multiple Choice
Steve steals one of Tricia's checks and forges her signature. Tricia's bank, Unity Bank, pays the check. Tricia can recover from
Question 44
Multiple Choice
Rikki signs a check "pay to the order of Scholar University" drawn on Rikki's account in State Bank to pay her tuition. Rikki is
Question 45
Multiple Choice
John writes a check to Kay as payment for a DVD player but soon discov?ers the player is broken. He goes to the drawee bank and orally author?izes Larry, a bank officer, to stop payment on the check. This order is valid for
Question 46
Multiple Choice
Fact Pattern 27-1A Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair the car properly, issues a stop-payment order. -Refer to Fact Pattern 27-1A. Capital Bank pays the check. Capital
Question 47
Multiple Choice
Brendan signs a check "pay to the order of City College Bookstore" drawn on his account in Delta Bank to pay for his current semester's textbooks. The bookstore deposits the check in its account in Eagle Bank. Like most checks, this check is
Question 48
Multiple Choice
Scott presents an instrument that states "pay to the order of Scott" to Town Bank for payment. This instrument is the most common type of negotiable instrument, which is
Question 49
Multiple Choice
Earl issues a check drawn on First National Bank to Good Office Supply to pay for six filing cabinets. Later, Earl discovers defects in the goods and orders First National to stop payment on the check. Earl does not renew the order, and the bank clears the check eight months later. The bank
Question 50
Multiple Choice
Pat, the manager of Quik Mart, deposits the store's receipts in its account at Regional Bank. As to the receipts, the relation?ship between Quik Mart and the bank is
Question 51
Multiple Choice
Dan writes a check to Emma on his account at First State Bank. The bank dishonors the check even though Dan has sufficient funds in his ac?count. The bank is
Question 52
Multiple Choice
Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is
Question 53
Multiple Choice
Jen signs a check "pay to the order of Key" drawn on Jen's account in Little Bank to buy Key's car. Jen asks Little Bank to indicate on the face of the check that it will accept it when Key presents it for payment. If the bank agrees, this will be
Question 54
Multiple Choice
Dhani signs a check "pay to the order of Etan" drawn on Dhani's account in First State Bank and dates the check "May 1." Etan presents the check to the bank for payment on December 15. This is
Question 55
Multiple Choice
Ian buys a cell phone in Jiffy Mart, using the means that accounts for more retail payments than any other. This means of payment is
Question 56
Multiple Choice
Liu signs a check "pay to the order of Marv" drawn on Liu's account in National Bank. Liu later orders National not to pay the check, but the bank pays it over Liu's order. Subsequent checks written on Liu's account "bounce." Most likely liable for the costs to Liu is
Question 57
Multiple Choice
Kris presents an instrument that states "pay to the order of Liv" to Metro Bank for payment. This is a special type of draft drawn on a bank, ordering the bank to pay a fixed amount of money on demand. This is