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31 Cards in this Set
- Front
- Back
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The most common form of negtiable 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 negotiated until it has been endorsed.
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TRUE
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A full endorsement limits both the transferability and the further neotiability 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 US
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FALSE
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You must pay off your credit card account in full at the end of ecery 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 receive 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 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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Which of the following endorsements is the least secure?
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Blank endorsement
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A written order or promise to pay a sum of money is called a(n)_________ instrument.
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Negotiable
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A(n)_________ instrument is payable to whoever holds it.
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bearer
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A bill of _____ is a negotiable and unconditional written order addressed by one party to another.
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exchange
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A short-term note or draft issued by a corporation or government is called ________ paper.
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commercial
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A(n) ____ endorsement transfers a check to another specified party.
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full
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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(n) ________ card allows a consumer to make purchases, but the account must be paid in full at the end of the month.
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charge
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_________ cards have embedded microchips use embedded logic to change and store values and record transactions.
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Smart
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Electronic ____________ are a monetary system based on the exchange of digital money via computer.
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tokens
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A computer program that monitors and limits incoming and outgoing transmissions via the Internet is called a(n) ___________.
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firewall
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Under the terms of your cerdit card, you must make a minimum payment of 5% of the total balance every month. This month your balance is $575. What is the amount of the minimum payment?
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(575)(.05)= $28.75
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