Question

A teenage boy has opened a checking account. He is surprised to find that though he is getting a written bank statement each month he is not getting his cancelled checks returned. The teenager should be aware that the reason cancelled checks are NOT returned is to:

a. protect him from providing opportunities for forgery.
b. insure that he does not receive important materials he is likely to lose.
c. lessen the bank’s need to maintain records of check transactions.
d. save the bank money associated with returning copies of the checks.

Answer 1

a. protect him from providing opportunities for forgery.

Step-by-step explanation:

This procedure from the bank is simply made to protect the boy from falling victim to forgery.

A simple definition.

A cancelled check is a check that has been paid by the bank. After transaction has been completed, the bank “cancels” the check, so it cannot be used again.

In this case, if à cancelled check is returned, in it contains the signature of the account holder which makes it a security leak for the account owner as a good forger can imitate the signature and withdraw money from the checking account without knowledge of the owner.

Answer 2

D.

Step-by-step explanation:

Cancelled checks are a proof of payment which have successfully undergone the clearing process. Banks are by law required to keep cancelled checks for seven years. Customers have access to copies online and are free to print them. Paper copies are only provided by many banks at a fee which explains why the teenage boy has not been sent copies.