AFM231 Chapter Notes - Chapter 25: Federal Bank, Negotiable Instrument, Financial Institution
11 Jul 2018
School
Department
Course
Professor
Document Summary
Every business has a relationship with a financial institution. This chapter deals with the nature of that relationship. It covers the relationship between banks and their customers, electronic banking and the new challenges this type of banking creates, and methods of payment including negotiable instruments. You are not expected to memorize the entire chapter, but rather understand the general concepts. Be guided by what we focus on in class. Electronic banking and its challenges: future of banking, e-banking carrying out financial transactions using computers, telephones, etc. Increasingly transactions using cell phones by people who do not have bank accounts. Legal issues: to date few significant legal problems have arisen. Afm 231 chapter 25: banking: system crashes/transmission failures or hackers, fraud. It is a much simpler claim: you must have enough funds in your account to cover the full amount of the cheque. The cheque is your commitment to pay the full amount not a partial amount.
