Which of the Following Is Correct with Respect to a Bank

question 57

Multiple Choice

Which of the following is correct with respect to a bank customer's duty to discover and report unauthorized signatures?

• A) The bank is liable on all items with unauthorized signatures even if these canceled checks were returned to the customer four years prior to the discovery of the alterations.
• B) The customer is required to exercise reasonable care and promptness to examine the bank statement.
• C) A customer's duty of examination includes checking the signatures of payees or indorsers.
• D) The bank is not required to exercise ordinary care in paying the items.

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Definitions:

Null Hypothesis

A statement in statistics that proposes there is no significant effect or difference between specified populations, any observed difference being due to sampling or experimental error.

Observed Difference

The apparent discrepancy or variation between two groups or conditions in an experiment or study.

Random Error

An unpredictable variation in data or experimental results, which occurs without a discernible pattern.

Systematic Variance

Variability in a set of scores that is the result of the independent variable; statistically, the variability of each group mean from the grand mean of all subjects.