Banking: Ch. 5

The most common form of negotiable instrument is a promissory note.

• True

• False

Check use in the United States is beginning to decline.

• True

• False

A check cannot be negotiated until it has been endorsed.

• True

• False

Banks are required to make a depositor’s funds available within 2 days.

• True

• False

It is recommended that you put your Social Security number on your checks.

• True

• False

You must pay off your credit card account in full at the end of every month.

• True

• False

The fastest-growing segment of banking security issues involves safeguarding the technology that makes doing business possible.

• True

• False

Fraud prevention occupies more resources of the banking industry than any other activity except routine processing.

• True

• False

Which of the following features of a check indicates who is to receive the funds?

• bearer

• signature

• payee

• memo

Why has electronic forms of payment grown?

• more convenient

• quicker

• less paper

• all of the above