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30 Cards in this Set

  • Front
  • Back
The most common form of negotiable instrument is a promissory note.
False
Check use in the United States is beginning to decline.
True
A check must be written on paper in order to be legal.
False
A check cannot be negotaited until it has been endorsed.
True
A full endorsement limits both the transferability and the furher negotiability of a check.
False
It is illegal for a bank to make different check-cashing rules for customers and noncustomers.
False
The Federal Reserve clears about 90 percent of the checks written in the U.S.
False
You must pay off your credit card account in full at the end of every month.
False
The fastest-growing segment of banking security issues involves safeguarding the technology that makes doing business possible.
True
Fraud prevention occupies more resources of the banking industry than any other activity except routine processing.
True
Which of the following features of a check indicates who is to recieve the funds.
the payee
The person who signs a draft is the
drawer
Which of the following is NOT an element of negotiability?
must be payable on demand
The term negotiation, as it applies to a negotiable instrument, applies to
the ability of the holder to obtain its value.
Which of the following endorsements is the least secure?
blank endorsement
Which of the following is an example of a restrictive endorsement?
"For Deposit Only"
Which of the following largely eliminated the wide variation of legal regulation from the country's payments system?
Uniform Commercial Code of 1958
Which of the following directly transfers money from a person's account to the account of a retailer?
debit card
The largest cause of loss to banks is
fraud
Which of the following is NOT a tip consumers should follow regarding the use of checks?
Have your social security number printed on your checks to aid identification.
A written order or promise to pay a sum of money is called
negotiable instrument
This instrument is payable to whoever holds it
bearer instrument
Is a negotiable and unconditional written order addressed by one party to another.
A bill of exchange
A short-term note or draft issued by a corporation or government is called
commercial paper
This endorsement transfers a check to another specified party.
A full endorsement
When the same funds are counted in two depository banks, the funds are called
float
A card that allows a consumer to make purchases, but the account must be paid in full record transactions.
A charge card
These cards have embedded microchips that use embedded logic to change and store values and record transactions.
Smart cards
Are a monetary system based on the exchange of digital money via computer.
Electronic tokens
A computer program that monitors and limits incoming and outgoing transmissions via the Internet is called a
firewall