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Question 1 of 10
1. Question
Select more than one answer:
Cheques are subject to various types of float relating to:Correct
Cheques are subject to various types of float relating to:
• production time
• mailing time
• recipient handling
• clearing time
• value‐datingIncorrect
Cheques are subject to various types of float relating to:
• production time
• mailing time
• recipient handling
• clearing time
• value‐dating -
Question 2 of 10
2. Question
Select TWO reasons for bouncing back of a cheque to the bank of deposit:
Correct
The big issue with cheques in some countries is the uncertainty of finality of payment. A cheque may be returned (‘bounced’ back to the bank of deposit) for many reasons, such as insufficient funds, technical reasons (words and figures ‘disagree’, stale date, not signed, etc.).
Incorrect
The big issue with cheques in some countries is the uncertainty of finality of payment. A cheque may be returned (‘bounced’ back to the bank of deposit) for many reasons, such as insufficient funds, technical reasons (words and figures ‘disagree’, stale date, not signed, etc.).
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Question 3 of 10
3. Question
Identify a practice that is not allowed in United States:
Correct
Some countries, such as Spain, allow cheques to be post‐dated (i.e. written for a date in the future and to be presented at that time), whereas in other countries, like the USA, the practice is not allowed.
Incorrect
Some countries, such as Spain, allow cheques to be post‐dated (i.e. written for a date in the future and to be presented at that time), whereas in other countries, like the USA, the practice is not allowed.
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Question 4 of 10
4. Question
In China, a cheque becomes stale after:
Correct
In China, a cheque becomes stale after ten days and, given their multiple clearing zones, this precludes the widespread use of cheques other than for local payments.
Incorrect
In China, a cheque becomes stale after ten days and, given their multiple clearing zones, this precludes the widespread use of cheques other than for local payments.
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Question 5 of 10
5. Question
Select the statement that best describes a giro system:
Correct
A giro is a credit transfer system through which transfer orders (giros) and the related information can be transmitted with the funds through the bank or the postal giro system.
Incorrect
A giro is a credit transfer system through which transfer orders (giros) and the related information can be transmitted with the funds through the bank or the postal giro system.
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Question 6 of 10
6. Question
Postal giros are similar to bank giros but are often operated through a separate clearing circuit run by:
Correct
Postal giros are similar to bank giros but are often operated through a separate clearing circuit run by the local giro center.
Incorrect
Postal giros are similar to bank giros but are often operated through a separate clearing circuit run by the local giro center.
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Question 7 of 10
7. Question
Giros normally take one to three days to pass through the banking system, thus creating:
Correct
Giros normally take one to three days to pass through the banking system, thus creating bank float.
Incorrect
Giros normally take one to three days to pass through the banking system, thus creating bank float.
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Question 8 of 10
8. Question
A type of contract that orders a party to pay a certain sum of money on specified terms refers to:
Correct
It is a specialised type of contract that orders a party to pay a certain sum of money on specified terms. A bill of exchange is a written order from one party (the drawer) to another (the drawee) to pay a specified sum on demand or on a specified future date to the drawer (or to a third party specified by the drawer).
Incorrect
It is a specialised type of contract that orders a party to pay a certain sum of money on specified terms. A bill of exchange is a written order from one party (the drawer) to another (the drawee) to pay a specified sum on demand or on a specified future date to the drawer (or to a third party specified by the drawer).
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Question 9 of 10
9. Question
What is the major difference between a promissory note and a bill of exchange?
Correct
The major difference between a promissory note and a bill of exchange is that a bill of exchange is transferable and can bind one party to pay a third party that was not involved in its creation. A promissory note does not have the legal standing of a bill of exchange (it is not an order to pay) and may not be able to be as easy to discount unless the drawer is considered a low credit risk.
Incorrect
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Question 10 of 10
10. Question
Banker’s drafts are used for making payments in foreign currencies when the company:
Correct
Banker’s drafts are also used for making payments in foreign currencies when the company does not maintain its own currency account.
Incorrect
Banker’s drafts are also used for making payments in foreign currencies when the company does not maintain its own currency account.