In Which of the Following Cases Is a Bank Considered

question 80

Multiple Choice

In which of the following cases is a bank considered liable for unauthorized payments?

• A)The bank does not attach canceled checks to the monthly statements of account.
• B)The bank does not provide images of paid checks online.
• C)The bank destroys original copies of canceled checks not sent to customers after seven years from the date of the check.
• D)The bank does not provide sufficient information on checks paid to customers in their monthly account statements.

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Definitions:

Annual Market Rate

The interest rate applicable for a period of one year, often used in the context of loans, savings, or investments.

Present Value Tables

Tables that help in determining the present value of a future amount of money or stream of cash flows given a specific interest rate.

Issue Price

The issue price is the price at which securities, such as bonds or stocks, are sold to the public or initial investors during their first offering.

Bonds

Long-term debt securities issued by corporations, municipalities, or governments to finance operations, projects, or infrastructure, paying interest to investors.