The Duties of a Drawee Bank Include All of the Following

question 16

Multiple Choice

The duties of a drawee bank include all of the following except to:

• A) maintain security concerning information relating to the depositor-bank relationship.
• B) pay on demand all checks to the extent of the bank's assets.
• C) exercise reasonable care in the payment of checks.
• D) generally refuse to pay any checks after the drawer has died.

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Definitions:

Public Sector

The part of the economy composed of both public services and public enterprises, funded and operated by the government.

Inefficient

refers to the suboptimal allocation or use of resources in a way that does not maximize potential output or outcomes.

Voting Paradox

is a situation in social choice theory where collective preferences can be cyclic (A is preferred to B, B is preferred to C, and C is preferred to A), despite the individual preferences being consistent.

Majority-Rule Voting

A decision-making process where the option that receives more than half of the votes is chosen, commonly used in democratic systems and organizations.