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