Which of the Following Is True of the Check 21

question 5

Multiple Choice

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

• A)It is a time-consuming and costly process.
• 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.

---

Definitions:

Quarterly Basis

Pertaining to or occurring every quarter of a year, often used in the context of financial reporting or dividend payments.

Homemade Dividend

A strategy where investors create their own dividend stream by selling a portion of their portfolio of equities, as opposed to relying on company-issued dividends.

Ex-Dividend Date

The date on which a stock begins trading without the right to receive the next declared dividend, typically set one business day before the record date.

Convertible Bonds

Convertible bonds are a type of debt security that can be converted into a predetermined number of the issuing company's shares, typically at the discretion of the bondholder.