1. In a check collection process that involves multiple banks, which bank is the first to receive a check?

the collecting bank

the payor bank

the Federal Reserve Bank

the depositary bank

2. Which of the following are examples of an electronic fund transfer (EFT)?

a transfer of funds through an ATM, a computer, a smart phone, or a paper check

a transfer of funds that involves only the Internet

online banking only

a transfer of funds through an automated teller machine (ATM), a computer, a smart phone, or online banking

3. The Electronic Fund Transfer Act (EFTA) provides for which of the following? Choose 3 answers.

protection for unauthorized electronic transactions if timely notice is given

civil damages only for violations

recovery of damages from a bank for an EFTA violation

that a bank must investigate an EFT complaint by a customer

4. Check fraud may occur through which of the following actions? Choose 2 answers.

marking through an incorrect date on a check and writing in another date

writing checks on two different banks to cover the float of funds

forging a signature

overdrawing a checking account, whether intentional or not

5. The Uniform Commercial Code (UCC) affects a banks relationship with its customers in which of the following ways? Choose 2 answers.

It permits a bank to pay on any altered check.

It allows a bank to refuse to pay a six-month-old check.

It permits a bank to pay an overdraft and charge a fee for the service.

It protects a bank from damages when it wrongfully dishonors an item.

6. Which of the following is a duty or obligation imposed on a bank customer by the Uniform Commercial Code (UCC)? Choose 2 answers.

A bank customer must review a bank statement in a reasonable period of time.

A bank customer must notify the bank of the forgery or alteration of the customers check.

A bank customer must notify the bank at any time a check is post-dated.

A bank customer who wishes to stop payment on a check must order the bank to do so within five days from the date of a check.

7. Under the Uniform Commercial Code (UCC), when must a depositary bank pass a check on to the next bank in the check collection process?

within 24 hours of the time it received the check for deposit

by midnight of the second banking day in which it received the check

by midnight of the next banking day following its receipt

in accordance with its agreement with its customer

8. What is the bank called that receives a check from another bank in the check collection process? Choose 2 answers.

depositary bank

drawer bank

payor bank, if it is the last bank in the processing chain

intermediary or collecting bank, if it only passes the check on without paying it

9. What is a Federal Reserve Bank called that acts as only a clearinghouse during the check collection process?

drawee or intermediary bank

payor or collecting bank

depositary or collecting bank

intermediary or collecting bank

10. Which article of the Uniform Commercial Code (UCC) governs bank relationships with their customers and other banks?

Article 4

Article 10

Article 5

Article 9