Which of the Following Is True Regarding the Bank Manager's

question 33

Multiple Choice

Which of the following is true regarding the bank manager's statement that the bank could not incur any liability for damages for the failure to stop payment on a check?

• A) The manager is correct.
• B) The manager is incorrect, and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided.
• C) The manager is incorrect, and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided, but only up to $500.
• D) The manager is incorrect, and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided, but only up to $1,000.
• E) The manager is incorrect, and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided, but only up to $1,500.

---

Definitions:

Conditions

The specific requirements, terms, or circumstances that define an agreement or situation.

Capacity

The maximum output that a business can produce under normal conditions over a certain period of time.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery and buildings.

Character

In finance, character often refers to one of the "Three Cs" (character, capacity, collateral) used to assess a borrower's creditworthiness, focusing on their reputation for repaying debts.