Explore BrainMass
Share

True and false

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

1. The B Bank loans Joe Smith some money. Joe signs a promissory note obligating him to pay the money back at 8% interest. The note is a standard form prepared by the bank. For this reason, the bank is the maker of this note.

True False

2. A check payable to the order of cash is an example of bearer paper.

True False

3. Ed pays for a gambling debt in State X using a check made payable to Tony Soprano, to whom he owes the debt. State X has a statute that makes any instrument in payment of a gambling debt void. The effect of this statute is:
A) The instrument is still negotiable,
B) The instrument is void.
C) The instrument is voidable.
D) Both A and B.

Answer:

4. Which of the following is a promise to pay money rather than an order to pay money?
A) A certificate of deposit.
B) A draft.
C) A check.
D) All of the above are promises to pay money.

Answer:

5. The drawer of a negotiable instrument:
A) Promises to pay a fixed sum of money on demand.
B) Is the party (usually a bank or another financial institution) who drafts a note.
C) Includes a checking account customer who writes a check on his account.
D) Is the party who receives payment on a note.

Answer:

6. A check that is payable "to Jay Zucker" is negotiated by Jay writing his name on the back of the check and giving it to the person to whom he wants to transfer it.

True False

7. The new Article 3 recognizes and enforces indorsements that prohibit further negotiation of the instrument.

True False

8. Mel threatens that he will get Kim fired from her job if she does not sign a check made payable to Bob for $1,000. Bob witnesses Mel's threats. Bob is still a holder in due course.

True False

9. The new Article 3 refuses to recognize or enforce:
A) Indorsements for deposit.
B) Conditional indorsements.
C) Indorsements directing the indorsee to act for someone else's benefit.
D) Indorsements for collection.

Answer:

10. In which of the following situations has the holder of a negotiable instrument not given value for it?
A) Where the holder takes the instrument as security for a preexisting claim.
B) Where the holder gives a negotiable instrument in return for the one received.
C) Where the holder receives the instrument as a gift.
D) Where the holder acquires a security interest in the instrument.

Answer:

11. A bank that certifies a check becomes primarily liable on that check.

True False

12. One who presents a negotiable instrument for payment warrants to the party making payment that the instrument has not been altered.

True False

13. Discharge of a negotiable instrument by cancellation of the instrument requires a writing stating that the instrument is being cancelled.

True False

14. Potter owes George $500.00. Potter writes a check payable to George for that amount. Later, George lost the check. Potter is now discharged from his liability on the check.

True False

15. Maya Efrat, Chief Financial Officer for BAZ Inc., is authorized to sign checks for BAZ Inc. She signs a check "BAZ Inc. by Efrat, Chief Financial Officer." Which of the following statements is most accurate?
A) Maya and not BAZ Inc. is liable on the check.
B) BAZ Inc. and not Maya is liable on the check.
C) Both BAZ Inc. and Maya are liable on the check.
D) Neither BAZ Inc. nor Maya are liable on the check.

Answer:

16. A bank may pay a post-dated check before the date on the check and charge the amount to the customer's account, unless the customer has given notice to the bank.

True False

17. An oral stop-payment order normally is good for 14 days.

True False

18. The Electronic Funds Transfer Act governs "check conversion" transactions.

True False

19. A drawer whose bank paid checks over a stop-payment order may not be entitled to have his account recredited if he is unable to show he suffered any loss.

True False

20. A written stop-payment order is good for:
A) 14 days, with a 14-day extension.
B) 14 days, with a six-month extension.
C) Six months, with a 14-day extension.
D) Six months, with a six-month extension.

Answer:

© BrainMass Inc. brainmass.com October 16, 2018, 11:43 pm ad1c9bdddf
https://brainmass.com/economics/banking/true-and-false-267703

Solution Preview

Dear Student,

Thank you for using BM.
Below are my answers.

Sincerely,
Anna Liza Gaspar

ANSWERS

Question 1: False

Question 2: True

Question 3: B

Question 4: A

Question 5: A

Question 6: True

Question 7: True Revised Article 3 follows original Article 3 by honoring certain ...

$2.19
Similar Posting

Marketing questions

1. Marketing:
_____a. should begin with the production process.
_____b. is defined as the advertising and selling process.
_____c. should anticipate potential customer needs or wants.
_____d. means selling whatever products are easy to produce.

2. In advanced economies, marketing costs about 20 cents of each consumer dollar.

_______True _______ False

3. A company focused on rushing a new product to market in order to take advantage of the company's exiting materials and capabilities is operating with a marketing orientation.
_______True _______ False

4. The marketing concept means that an organization aims all its efforts at satisfying its customers?at a profit.

_______ True _______ False

5-9. Put a "P" if it pertains to Production Orientation and "M" if it pertains to Marketing Orientation.
_____ a. Customer needs determine company plans.
_____ b. The company sells what it can make.
_____ c. If we build a Web site, customers will flock to us.
_____ d. Profit is a critical objective.
_____ e. Eliminate costs that do not give value to customer.

10. Retaining current customers is usually more costly than winning them away from competitors.

_______True _______ False

11. A target market:
_____ a. is a production oriented approach.
_____ b. responds to a "one size fits all" marketing mix.
_____ c. is a fairly homogeneous (similar) group of customers to whom a company
wishes to appeal.
_____d. is limited to small market segments.

12. Mass marketing strategy assumes that all customers are the same and the market is fragmented.

_______True _______ False

13. The acronym SWOTT stands for:

_____ a. Strategy, Work-in-progress, Opportunities, Technology, Trends
_____ b. Strengths, Weaknesses, Opportunities, Trends, Threats
_____ c. Strategy, Wealth, Organization, Technology, Training
_____ d. Strengths, Weaknesses, Opportunities, Threats, Trends
_____ e. Strategic Work Options To Target

14. Target marketers believe that ____________ should be the focus of all business and
marketing activity.

_____ a. Products
_____ b. Customers
_____ c. Budgets
_____ d. Distribution channels
_____ e. Advertising mediums

15. The marketing research process is a five-step application of the scientific method that includes:

_____ a. Defining the problem, analyzing the situation, getting problem-specific data,
interpreting the data, and solving the problem
_____ b. Defining the target market, analyzing the customers, getting survey feedback,
interpreting the data, and launching the marketing campaign
_____ c. Defining the marketing campaign goals, analyzing the product features, analyzing
the situation, getting budget approval, and launching the marketing campaign
_____ d. Defining the problem, conducting surveys, analyzing survey feedback, interpreting
the data, and changing product attributes
_____ e. Defining company goals, analyzing customers, analyzing products, conducting
interviews, and changing product attributes

16. The difference between primary and secondary research is:

_____ a. Primary research consists of one-on-one interviews while secondary research is done
in a group setting
_____ b. Primary research data sources come from observation and questioning while
secondary research data sources come from both inside and outside of the company

_____ c. Primary research data is qualitative while secondary research data is quantitative
_____ d. Primary research is based on focus group interviews while secondary research is based
on one-on-one interviews
_____ e. Primary research is less expensive but more time consuming

17. It is expected that by the next 25 years the population of U.S. seniors will:
_____ a. more than double
_____ b. be cut in half by the avian flu epidemic
_____ c. will remain the same
_____ e. will increase by about 10 percent.

18. The buyer decision process consists of three stages: evaluation of alternatives, purchase decision, and postpurchase behavior.

_______True _______ False

19. The following are all factors affecting a firm's decision to pursue market segmentation strategy except:
_____ a. Similarity of customer needs, attitudes, and buying behavior
_____ b. Firm's resources
_____ c. Nature of competition
_____ d. Homogeneous markets
_____ e. Size of target markets

20. The Internet has impacted marketing research in all of the following ways except:

_____ a. It is easier and faster to locate secondary data

_____ b. Research data found on the Internet is more reliable than other sources

_____ c. Primary research data can be obtained directly from some business processes
_____ d. It is less costly to locate secondary data
_____ e. In some cases it may be less costly to obtain primary data

View Full Posting Details