1.

CASH AS A PAYMENT SYSTEM

1. What is cash classified as in a country's payment system?

○ A) Alternative asset
○ B) Government obligation
○ C) Legal tender
○ D) Non-negotiable instrument
2. Which institution issues Federal Reserve notes in the United States?
○ A) U.S. Treasury
○ B) Federal Reserve Banks
○ C) State governments
○ D) Department of Commerce
3. In Vietnam, what is the official symbol of the Vietnamese Dong in the
international market?
○ A) VNĐ
○ B) VND
○ C) DONG
○ D) đ
4. What happens to damaged currency in Vietnam?
○ A) It is discarded by commercial banks.
○ B) It is returned to the State Bank of Vietnam.
○ C) It is melted and recirculated.
○ D) It is exchanged for new currency without any fee.

2. CHECKS AS A PAYMENT SYSTEM

5. A check is best defined as:

○ A) A digital payment instrument issued by banks.
○ B) A draft on an account that directs the bank to pay a certain amount to the
payee.
○ C) An online transfer mechanism.
○ D) A savings account instrument.
6. What is the purpose of the Uniform Commercial Code (UCC) in the U.S.?
○ A) To govern commercial transactions with a uniform set of laws across states
○ B) To limit commercial transactions between private individuals
○ C) To prevent online fraud
○ D) To set federal banking regulations
7. Who is the "drawer" in a check transaction?
○ A) The person to whom the check is written
○ B) The bank holding the account
○ C) The person writing the check
○ D) The teller cashing the check
8. For a check to meet negotiability requirements, it must:
○ A) Be written in U.S. dollars only
○ B) Be postdated by at least a week
 ○ C) Be an unconditional order or promise to pay a fixed amount of money
○ D) Include only the drawer’s signature
9. What does "payable to bearer" imply for a check?
○ A) It can be cashed only by the bank.
○ B) It can be cashed by any person in possession of the check.
○ C) It requires two signatures.
○ D) It can only be deposited, not cashed.

3. TYPES OF CHECKS

10. A cashier’s check is defined by which of the following?

○ A) Issued by a customer and verified by a bank
○ B) Issued by and drawn on a bank, making the bank both drawer and drawee
○ C) Issued by one bank and drawn on another
○ D) A check issued to a business account holder
11. What is a primary use of a traveler’s check?
○ A) Used for domestic online transactions only
○ B) Used when traveling to locations where other payment forms may not be
accepted
○ C) Reserved for government employees
○ D) Restricted to cash-only transactions
12. A certified check is distinguished by:
○ A) A signature of the payee
○ B) The bank’s acceptance and a stamp indicating certification
○ C) It being issued by the government
○ D) Its use only in foreign currency transactions

4. ELECTRONIC CHECK PROCESSING

13. A substitute check must contain:

○ A) Only an image of the check’s front
○ B) Identification of the person creating it
○ C) A legend stating, “this is a legal copy of your check. You can use it the
same way you would use the original check”
○ D) Signatures from all past endorsers
14. What is the purpose of the truncating bank in electronic check processing?
○ A) To collect funds for the bank issuing the check
○ B) To convert the paper check into an electronic file
○ C) To add security features to checks
○ D) To endorse the check for final clearance

5. CHECK PAYMENT PROCESS

 15. Checks payable to an identifiable person require:
○ A) A blank endorsement only
○ B) Endorsement by the payee
○ C) Authorization by the bank manager
○ D) Only the drawer’s signature
16. What is a "restrictive endorsement"?
○ A) An endorsement that restricts a check to be deposited only in a specific
account
○ B) An endorsement allowing the check to be used as cash
○ C) A signature requirement for the drawer only
○ D) A type of endorsement used only in cashier’s checks
17. If a check is payable to "A and B," how many signatures are required?
○ A) Only A’s
○ B) Only B’s
○ C) Both A and B
○ D) Either A or B
18. What is the main responsibility of the drawee in a check payment process?
○ A) To issue the check
○ B) To provide information about the check’s amount
○ C) To pay the check and verify the drawer’s account
○ D) To collect fees from the payee

6. CHECK FRAUD

19. Counterfeiting checks involves:

○ A) Using real checks only
○ B) Creating bogus checks or altering valid checks
○ C) Only using official cashier’s checks
○ D) Issuing checks with no payee information
20. Closed account fraud is also known as:
○ A) Paperhanging
○ B) Check kiting
○ C) Direct endorsement fraud
○ D) Account hijacking
21. Check kiting relies on which of the following?
○ A) A single account for frequent transactions
○ B) The use of multiple accounts at different banks to float checks without
actual funds
○ C) Online banking services for fraud
○ D) Only certified checks
22. Banks identify fraudulent checks by inspecting for:
○ A) Perforations and discoloration
○ B) Low check numbers
○ C) Missing information such as MICR numbers
○ D) All of the above
7. LAWS AND REGULATIONS

23. The purpose of the Collection of Checks and Funds Transfers regulation is to:
○ A) Facilitate the return of cash-only transactions
○ B) Provide rules for collecting, returning items, and settling balances
○ C) Regulate online transactions only
○ D) Issue new checks for account holders
24. The Expedited Funds Availability Act requires banks to:
○ A) Make funds available at their own discretion
○ B) Follow a set schedule for funds availability in transaction accounts
○ C) Delay funds availability for several weeks
○ D) Provide funds only upon government request
25. What is a primary requirement of the Check 21 regulation?
○ A) Only allows banks to issue digital checks
○ B) Requires banks to educate customers about substitute checks
○ C) Prevents substitute checks from being used
○ D) Bans foreign currency checks
26. Under Check 21, if a customer believes a substitute check was incorrectly
charged, they may:
○ A) Request expedited credit
○ B) Open a new account
○ C) Withdraw the disputed amount immediately
○ D) Close the substitute check account

8. MISCELLANEOUS

27. The element of a check that specifies the amount of payment must be:
○ A) In numbers only
○ B) In monetary terms and clearly visible on the check
○ C) Filled out by the drawee
○ D) Signed by the teller
28. A check payable on demand implies:
○ A) It can be cashed only on the date written
○ B) It is cashable immediately upon presentation unless otherwise specified
○ C) It must be deposited for later use
○ D) It requires dual endorsements
29. Who is responsible for providing warranties for substitute checks under Check
21?
○ A) The Federal Reserve
○ B) The bank creating the substitute check
○ C) Only the check writer
○ D) The payee’s bank
30. A blank endorsement on a check means:
○ A) Only the payee can cash it
○ B) The check becomes a bearer instrument, negotiable by anyone in
possession
○ C) It can only be used for deposit
○ D) It requires the drawer’s re-endorsement