Personal Finance (MindTap Course List)
13th Edition
ISBN: 9781337099752
Author: E. Thomas Garman, Raymond Forgue
Publisher: Cengage Learning
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Question
Chapter 5, Problem 4FPC
Summary Introduction
Case summary: JF has opened a savings account, on November 25 he discovered that there are some fraudulent transactions in his account, by analyzing the liability of unauthorized transaction of ETFA it was discovered that he is under risk of unlimited loss.
Characters in the case : JF of Oxford, Mississippi.
Adequate information: JF has a savings account, experienced some fraudulent transactions. It is required to determine the risk JF has on account of this transactions. ETFA issued gu
To determine: The money J would lose because of fraudulent transactions in his account.
Introduction:
Liability on unauthorized transactions:The Electronic Funds Transfer Act (ETFA) is the governing law, also known as Regulation E, was implemented to protect consumers using electronic means to manage their finances. The financial institution must make sure that customer know their liability in case the card is lost or stolen. The financial institution should provide a phone number for reporting loss and description of its error resolution process and information on customer’s liability and his rights.
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James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.
DATE
TRANSACTIONS
20X1
Mar.
4
Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days.
11
A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent.
22
Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent.
23
Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent.
25
Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance.
28
Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…
Chapter 5 Solutions
Personal Finance (MindTap Course List)
Ch. 5.1 - Prob. 1CCCh. 5.1 - Explain the circumstances when it would be...Ch. 5.1 - Prob. 3CCCh. 5.1 - Summarize your insurance protections when you have...Ch. 5.2 - Explain why opening a checking account and a money...Ch. 5.2 - Prob. 2CCCh. 5.2 - Prob. 3CCCh. 5.2 - Prob. 4CCCh. 5.3 - Prob. 1CCCh. 5.3 - Prob. 2CC
Ch. 5.4 - Prob. 1CCCh. 5.4 - Prob. 2CCCh. 5.4 - Prob. 3CCCh. 5.4 - Prob. 4CCCh. 5.5 - Prob. 1CCCh. 5.5 - Prob. 2CCCh. 5 - Invest Now or Later? Twins Natalie and Kaitlyn are...Ch. 5 - Prob. 2DTMCh. 5 - Reconciling a Checking Account. Andrew Parker, of...Ch. 5 - Saving for College. You want to create a college...Ch. 5 - Prob. 5DTMCh. 5 - Prob. 1FPCCh. 5 - Prob. 2FPCCh. 5 - Prob. 3FPCCh. 5 - Prob. 4FPCCh. 5 - Prob. 5FPCCh. 5 - Prob. 6FPCCh. 5 - Prob. 7FPCCh. 5 - Prob. 8FPCCh. 5 - Keep Your Accounts Current. Go online every few...
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