In Which of the Following Cases Is an Overdraft Created

question 75

Multiple Choice

In which of the following cases is an overdraft created in a drawer's account?

• A) a properly payable check issued by the drawer is presented for payment, but the drawer's account does not have sufficient funds in it
• B) the drawer issues a stop-payment order for a check, but the bank still goes ahead and pays the holder of the check
• C) the bank pays the holder of a check in which the amount payable is altered to indicate a higher amount than was originally intended
• D) the payee presents the check after six months from the date of the check and the bank still pays the holder

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Definitions:

Represent

To act on behalf of another person or group in a legal setting or to depict or portray something in a specified manner.

Court

An institution where legal disputes are resolved through the adjudication process by judges and sometimes juries.

Judge

An official appointed to decide cases in a court of law.

Conflict-Of-Interest

A situation in which a person or entity has competing interests or loyalties that can potentially interfere with the ability to make impartial decisions.