Understanding Business and Personal Law
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Chapter 24: Writing Checks
      
  1.Regulation CC provides for banks to disclose in advance their policy for making funds available to depositors.  
  a.   TRUE  
  b.   FALSE  
      
  2.Writing a check on an account with insufficient funds is larceny or attempted larceny, unless it is accidental.  
  a.   TRUE  
  b.   FALSE  
      
  3.A bad check is one that  
  a.   the bank deems too old to honor.  
  b.   the bank is liable for any loss that you might suffer.  
  c.   is drawn on an account in which you have insufficient funds.  
  d.   is signed by someone other than the drawer.  
      
  4.If you make a mistake when writing a check, cross out the mistake and make the correction.  
  a.   TRUE  
  b.   FALSE  
      
  5.On a check, if there is a difference between the figures and the words  
  a.   the bank will ask the drawer to interpret which amount is correct.  
  b.   the bank will not honor the check.  
  c.   the bank will honor the amount in figures.  
  d.   the bank will honor the written amount.  
      
  6.When involved in a business transaction with a stranger, request a certified check.  
  a.   TRUE  
  b.   FALSE  
      
  7.A debit card offers you  
  a.   limited liability after the first 60 days of use.  
  b.   more legal protection than a credit card.  
  c.   less legal protection than a credit card.  
  d.   limited liability within the first 60 days of use.  
      
  8.A check that is guaranteed by the bank is called a  
  a.   money order.  
  b.   certified check.  
  c.   bank draft.  
  d.   cashier's check.  
      
  9.Money orders are not as freely negotiable as other instruments because  
  a.   they are not negotiable overseas.  
  b.   they do not require a signature.  
  c.   they may be transferred only once.  
  d.   they are purchased at a post office.  
      
  10.Overdraft protection prevents most forged checks.  
  a.   TRUE  
  b.   FALSE  

 
 
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