A Written Stop-Payment Order

question 16

Multiple Choice

A written stop-payment order:

• A) is valid for only 14 days and cannot be extended further even if written instructions are given to the bank by the customer.
• B) is valid for only three months unless confirmed in writing.
• C) is not valid for more than 48 hours.
• D) is valid for six months, and can be extended for another six months if written instructions are given by the customer.

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Definitions:

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive," occurring when a statistical test falsely indicates the presence of an effect.

Type I Error

A statistical error made by rejecting the null hypothesis when it is actually true, known as a false positive.

Type II Error

The failure to reject a false null hypothesis, also known as a "false negative."