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

question 5

Multiple Choice

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

• A) It returns the check.
• 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:

Price Ceiling

A government-imposed limit on how high a price is charged for a product.

Oil Products

Refined products derived from crude oil processing, such as gasoline, diesel, jet fuel, and heating oil.

Hugo Chávez

Former Venezuelan military officer and politician who served as the President of Venezuela from 1999 until his death in 2013.

Price Ceiling

A legally imposed maximum price on a good or service, intended to prevent prices from rising above a certain level.