When a Payor Bank Gets an Item Payable from a Customer's

question 62

Multiple Choice

When a payor bank gets an item payable from a customer's account with insufficient funds, the bank may:

• A) dishonor the item and return it.
• B) pay the item and charge it to the customer's account even though an overdraft is created.
• C) Either may happen.
• D) Neither is allowed.

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Definitions:

Payroll

The total amount of wages paid by a company to its employees and contractors.

JAD

Joint Application Development, a methodology that involves the client or end user in the design and development of an application through collaborative workshops.

Development Process

A structured approach to creating a new product, system, or software, which typically includes stages such as planning, design, development, testing, and deployment.

RAD Stage

Refers to the Rapid Application Development stage, a software development methodology focused on quick and interactive development cycles, emphasizing user feedback.