Appendix E for Unit Five
Questions on the Features
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
CHAPTER 24—SHIFTING LEGAL PRIORITIES FOR BUSINESS:
PERSON–TO–PERSON MOBILE PAYMENTS AID IN SUSTAINABILITY
A1. Dustin loans Concepcion $50. Concepcion can aid sustainability by
a. sending a paper check in payment.
b. sending payment to Dustin’s e-mail address or cell phone number.
c. spreading payment over several installments.
d. loaning the $50 to Blair.
CHAPTER 27—INSIGHT INTO ETHICS:
EXPEDITED FUNDS AND INCREASING CHECK FRAUD
A2. Phoebe sends Rosinda a cashier’s check for $1,000. Rosinda deposits the check into
her account at Security Bank. The next business day, the bank confirms a $1,000
increase in Rosinda’s account. She then wires Phoebe $150 for “fees.” Later, the bank
discovers that the check is a fake. Most likely, the loss falls to
a. Rosinda.
b. Security Bank.
c. Rosinda and Security Bank in equal measure.
d. no one.
UNIT FIVE—FOCUS ON ETHICS:
NEGOTIABLE INSTRUMENTS
A3. In accord with banking industry practices, US Bank’s computers are programmed to
verify signatures only on checks exceeding $1,000. US Bank cashes a check for $900 on
the forged signature of its customer Vita. Under UCC Article 3, with respect to
reasonable commercial standards, US Bank is
a. definitely liable.
b. definitely not liable.
c. liable if any other bank verifies all signatures on all checks.
d. liable if Vita has never written or cashed a check for more than $899.
A4. National Bank‘s policy is to examine signatures only on checks exceeding $2,500.
Checks for lesser amounts are selected randomly for signature verification. National
fails to verify a forged drawer’s signature on a check for $1,500 drawn on Odel’s
account. Most likely liable for the amount is
a. National Bank for a failing to exercise due care.
b. National Bank’s other customers to whom the loss can be “spread.”
c. Odel on the ground that she was a fictitious drawer.
d. the specific National employee who did not verify the signature.