Which of the Following Is True of the Check 21

question 11

Multiple Choice

Which of the following is true of the Check 21 Act?

• A) The processes it enabled are time-consuming and costly.
• B) It is designed to enable banks to handle more checks electronically.
• C) It completely discourages check truncation.
• D) It requires banks to retain a legible copy of checks for fifteen years.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, representing a portion of the corporate profits.

Transaction Costs

Expenses incurred when buying or selling securities, including broker fees, commissions, and other charges.

Tailoring

The process of making or adapting something, especially clothing, to meet specific requirements or fit particular measurements.

Dividend Stream

The flow of dividend payments issued by a company to its shareholders over time, reflecting the firm's profitability and policy on income distribution.