1
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 25—INSIGHT INTO E-COMMERCE:
SMARTPHONE-BASED PAYMENT SYSTEMS
B1. When possible, Taye pays recurring monthly bills through automatic bank
transfers and person-to-person payments to e-mail addresses or cell phone
numbers. Compared to the use of paper checks, Taye’s payment methods
a. aid sustainability.
b. hurt sustainability.
c. will never affect sustainability.
d. are poised to take a step toward sustainability.
CHAPTER 28—INSIGHT INTO ETHICS:
EXPEDITED FUNDS AND AN INCREASE IN CHECK FRAUD
B2. Rubi sends Sage a certified check for $5,000. Sage deposits the check into her
account at Town Bank. The next business day, the bank confirms a $5,000
increase in Sage’s account. She then wires Rubi $500 for “fees.” Later, the
bank discovers that the check is counterfeit. On these facts, the bank can
deduct from Sage’s account
2 TEST BANK B—UNIT FIVE: NEGOTIABLE INSTRUMENTS
a. $5,500.
b. $5,000.
c. $500.
d. 0.
UNIT FIVE—FOCUS ON ETHICS:
NEGOTIABLE INSTRUMENTS
B3. Capital Bank’s policy requires that indorsements on checks exactly match the
names of the payees. Don, an employee of eData Company, issues and
indorses several payroll checks in the names of former employees and
deposits them into his account at Capital. eData files a suit against Capital to
recover the funds. Most likely to suffer the loss is
a. Capital Bank on the basis of bad faith.
b. Don on the ground that he was a fictitious payee.
c. eData Company for failing to monitor its employee.
d. the employees in whose names the checks were issued and indorsed.
B4. Huey signs a promissory note in reliance on Ian’s assurance that it is not a
note. Ian negotiates the note to Jinx Collection Agency, which is a holder in due
course (HDC) of the note. When Jinx tries to collect, Huey refuses to pay.
Under the HDC doctrine, the loss falls on
a. Huey only.
b. Huey and Jinx equally.
c. Huey or Jinx, depending on which party can afford the loss.
d. Jinx only.