[Bank Statement Woes] While Examining Her Bank Statements in July

question 45

Multiple Choice

[Bank Statement Woes] While examining her bank statements in July, Ariel found several questionable items and telephoned her bank to sort out the problems. First, Ariel was charged $50 in a recurring direct withdrawal for her yoga class. However, Ariel had notified the bank at 4:30 p.m. the previous day that she wanted to cancel the automatic payment. Second, Ariel noticed two EFT payments in February to a veterinarian in another state, which Ariel is certain she did not authorize, since she does not have a pet. Third, Ariel noticed several EFT payments for a magazine subscription, which Ariel did not authorize and she never received any magazines. Also, Ariel wants to stop payment on an internet order she made two hours ago for an expensive watch.
-Is Ariel correct that the EFT charge to the veterinarian should be removed because it was not authorized?

• A) Yes, because Ariel did not authorize the payment.
• B) Yes, but only if Ariel can prove that she did not authorize the payment and that she does not own a pet.
• C) Yes, because Ariel did not authorize the payment and she notified the bank of the error.
• D) No, because she did not notify the bank of the errors within 90 days of receiving her bank statement.
• E) No, because she did not notify the bank of the errors within 60 days of receiving her bank statement.

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Definitions:

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often based on the risk of investing in that company's equity.

Dividend Growth Model

A valuation method that estimates the price of a company's stock based on the dividend growth rate and the expected dividend payments.

Estimated Dividend Growth Rate

The projected annual rate at which dividends paid by a company or fund are expected to grow.