1. Josie wants to purchase a car at an auction, and needs a check that will serve as the equivalent to cash to pay for the car. Josie should take a __________ check to the auction. 

A. traveler's 

B. certified 

C. guaranteed

D. cashier's 

 

2. Sally borrowed $500 from Burt. Sally signed a note stating that in five years she would pay Burt whatever amount he deemed fair to repay the loan. The note isn't negotiable, because negotiable instruments must 

A. state an unconditional promise or order to pay. 

B. state a fixed amount of money. 

C. be payable on demand or at a definite time. 

D. be payable to order or to bearer. 

 

3. Pete sets up an account with Ben's Movie Gallery, whereby whenever Pete rents movies at the Movie Gallery, the amount for the movie rental is deducted from Pete's card account and Ben's Movie Gallery's account is credited for that amount. This set of facts is an example of a/an ______ payment system. 

A. online 

B. cyberbanking 

C. smart card

D. credit card 

 

4. Samantha writes a check to Miranda for $2,500, to be drawn from her account with Mahopani Bank. Miranda deposits the check into her account with Central Bank. Central Bank sends the check to Buffalo Bank, which sends the check to Mahopani Bank for payment. Which of the following is true about this set of facts? 

A. Buffalo Bank is an intermediary and collecting bank. 

B. Mahopani Bank is an intermediary and collecting bank. 

C. Central Bank is the payor bank. 

D. Buffalo Bank is the depository bank. 

 

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