FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 25: Business and Banking

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

What form of electronic transaction involves a contract between the issuer and the user and a contract between the issuer and the merchant?

A) PayPal transaction
B) credit card transaction
C) money card transaction
D) smart card transaction

E) C) and D)
F) None of the above

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Which statement is a valid criticism of electronic transactions?

A) Safeguarding transfer authority is a major challenge for e commerce.
B) Authorization codes are necessary in electronic messages.
C) There is a tradeoff between increased efficiency and the absence of rules.
D) Safeguarding transfer authority is a major challenge for customers.

E) A) and D)
F) None of the above

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

Special endorsements stop the circulation of cheques and remove the risk of anyone else acquiring and cashing them.

Which of the following would strongly support a refusal to honour payment to a holder in due course?

With respect to the party bearing the risk where payment of goods is made by cheque,the risk is borne largely by the payment system.

A negotiable instrument is markedly different from an ordinary assignment of contractual rights,where there can be any number of defences against paying.

There are no defences available against a holder in due course.

Which term refers to a document that contains a written promise to pay another person a specific amount on demand or at a specified date?

Which of the following describes the least restrictive form of endorsement by a holder of a negotiable instrument?

What is a consumer note and what are the implications of a negotiable instrument being classified as a consumer note?

Highland Bakery Inc.has forwarded a cheque to Prairie Flour Mills Ltd.to pay Prairie's invoice for the flour it recently delivered.Prairie will deposit the cheque into its account upon receipt.How will the actual cash payment represented by the cheque be credited to Prairie Flour Mills' account?

A cheque endorsed in blank may be cashed by whoever possesses it because,with this type of endorsement,the bank will consider that the signature is complete.

Which of the following resulted from the reclassification of non commercial promissory notes,enacted to ensure payment is subject to claims arising from the original contract of sale?

Why is it risky to endorse a cheque in blank?

Which position offers the most security: being a holder in due course of a cheque or an assignee under an assignment of a debt,and why?

A retailer who has made a substantial sale to an individual who paid cash need not be concerned whether or not the monies it received are the proceeds of a crime.

What is required for an instrument to become negotiable?

To which of the following is the bank's duty to maintain the secrecy of customer information subject?

Which of the following would strongly suggest to a court that a bank has entered into a fiduciary relationship with its customer?

Individuals who conduct contractual business with banks need to appreciate the importance of the contract and become familiar with their basic rights and obligations,and they should understand that not only is the contract written largely to protect the bank but also their bargaining power is very limited.