If a Bank Improperly Refuses to Make Payment of Checks

question 31

True/False

If a bank improperly refuses to make payment of checks for which its customer has sufficient funds on deposit,it is liable to the drawer for damages sustained by the drawer in consequence of such dishonor.

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Definitions:

Transaction

An exchange between a business and one or more external parties to a business or a measurable internal event such as the use of assets in operations.

Exchange

A marketplace where securities, commodities, derivatives and other financial instruments are traded.

Unearned Revenue

Money received by a company for goods or services that have yet to be delivered or performed.

Liability

Financial obligations or debts that a company owes to outside parties, which must be settled over time through the transfer of economic benefits.