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Multiple Choice Quiz
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1
Utley calls his bank on June 1 and orally stops payment on a check. To prevent the oral stop payment order from expiring, Utley must renew the order in writing no later than _____.
A)June 5
B)June 8
C)June 10
D)June 14
2
Johnson postdates a check for lawn mowing while he will be out of town and his bank charges his account for the postdated item. Johnson may _____.
A)recover from his bank
B)not recover from his bank
C)recover from his bank only if he notified his bank reasonably in advance
D)not recover from his bank unless he noted on the check that it was not to be cashed until the listed date
3
Overdraft protection is _____.
A)mandatory to 10% of the average daily balance
B)not mandatory
C)mandatory if the customer makes a written demand on her bank
D)not mandatory unless the bank uses substitute checks
4
A payor bank must settle or return checks by _____ if it is not the depositary bank.
A)midnight of the banking day of receipt
B)midnight of the next business day following the banking day on which it receives the relevant item
C)midnight of three banking days after the receipt
D)midnight of five banking days after the receipt
5
Xena deposits her income tax refund check at her bank on Monday May 1. The bank makes the funds available to her by _____.
A)May 2
B)May 3
C)May 4
D)May 5
6
Dick is declared mentally incompetent on July 1. He continues to write checks until July 8 and his bank is notified of his incompetency on July 12. On what date should his bank have stopped paying checks?
A)July 1
B)July 8
C)July 12
D)July 22
7
When is a bank an agent of its customer?
A)When it pays an overdraft.
B)When the customer deposits cash.
C)When the bank processes checks that the customer deposits.
D)When it grants provisional credit on a deposit.
8
Under the UCC a business that orders money to be sent electronically is called the _____.
A)sender
B)originator
C)electronic transfer
D)beneficiary
9
If a bank customer fails to notify her bank of the theft of her ATM card within _____, her liability for loss becomes unlimited.
A)two business days
B)five business days
C)thirty days
D)sixty days
10
Article _____ of the UCC governs electronic fund transfers made by banks.
A)3
B)3A
C)4
D)4A





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