set 6: Checks

Question 1

written, dated, and signed instruments that directs a bank to pay the bearer

Answer 1

Checks

Question 2

the person issuing the check

Answer 2

Drawer

Question 3

is the bearer or the person or the entity named on the check to whom payment is to be made

Answer 3

Payee

Question 4

the bank in which the drawer maintai9ns a checking account

Answer 4

Drawee Bank

Question 5

6 parts of a check

Answer 5

1 Date
2 Name of Payee
3 Amount in Figures
4 Amount in Words
5 Signature
6 Memorandum Line

Question 6

when it was drawn or issued to a payee

Answer 6

Date

Question 7

should be written in the format MM/DD/YEAR

Answer 7

Purely Numeric Format

Question 8

fully written date

Answer 8

Alpha-Numeric Format

Question 9

correct spelling of the payee’s name must be written

Answer 9

Name of Payee

Question 10

centavos must be seperated by a decimal point

Answer 10

Amount in Figures

Question 11

should match the amount in figures and word “only” is added

Answer 11

Amount in Words

Question 12

drawer affixes his signature on the signature line

Answer 12

Signature

Question 13

optional part of the chek

Answer 13

Memorandum Line for Memo line

Question 14

check clearing operation of different banks in the Philippines

Answer 14

PCHC

Question 15

an electronic payments network that enables the customers of its members to transact at atm

Answer 15

Bancnet

Question 16

bearing a future date
commonly used for periodic payments

Answer 16

Post-Dated Check

Question 17

becomes stale 6 months after the date written on it

Answer 17

Stale Check

Question 18

cannot be cashed
deposit only

Answer 18

Crossed check

Question 19

pay-to-cash
anyone who bears the check can have it cashed

Answer 19

Bearer Check

Question 20

not honored by banks for encashment

Answer 20

Invalid Checks

Question 21

incomplete or lacking details

Answer 21

Blank/incomplete checks

Question 22

erasures on the check are cured by striking the erroneous entries or applying correction

Answer 22

Modified or Altered Checks

Question 23

teared, crumpled, wet, or burned checks may dishonored when parts are no longer readable

Answer 23

Mutilated Checks

Question 24

require a payee to present a valid ID when cashing a check

Answer 24

Misspelled payee’s name

Question 25

matched with the specimen signature submitted by the drawer to the bank

Answer 25

Mismatched signatures

Question 26

amount in figures must agree in words

Answer 26

mismatched amount in figures and in words