If a Checking Account Customer Fails to Report a Series

question 56

True/False

If a checking account customer fails to report a series of forgeries or alterations by the same wrongdoer on the same account within 30 days from receiving the monthly statement of account, then the bank is discharged from liability on all similar forged or altered checks after that date and prior to notification.

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Definitions:

Gini Coefficient

A number that summarizes a country’s level of income inequality based on how unequally income is distributed across quintiles.

Income Inequality

The unequal distribution of household or individual income across the various participants in an economy.

Ability-to-pay Principle

A tax principle that suggests taxes should be levied according to an individual or entity's capacity to pay, reflecting their income or wealth.

Transfer Payments

Payments made by governments to individuals or other entities without the expectation of a direct return or the provision of goods or services, such as social security benefits or subsidies.