What Is the Effect of a Payor Bank's Dishonor of a Check

question 56

Multiple Choice

What is the effect of a payor bank's dishonor of a check?

• A) It returns the check to each intermediary or collecting bank.
• B) The provisional credits must be reversed.
• C) The customer who deposited the item for collection must cover the item and seek recovery from the drawer or indorsers.
• D) All of these will occur.

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Definitions:

Destructive

Causing great and irreparable harm or damage.

Defense Mechanisms

Psychological strategies used by individuals unconsciously to protect themselves from anxiety arising from unacceptable thoughts or feelings.

Repression

A defense mechanism in psychoanalytic theory where distressing thoughts and memories are unconsciously pushed out of conscious awareness.

Displacement

A defense mechanism where the mind substitutes either a new aim or a new object for goals felt in their original form to be dangerous or unacceptable.