FBLA Banking and Financial Systems Practice Test 2025 – The Complete All-in-One Guide to Exam Success!

Question: 1 / 460

Is it necessary for a check to be written on paper to be considered legal?

No, electronic checks are also legal.

Writing a check on paper is not a requirement for it to be considered legal; electronic checks are also valid forms of payment. This is grounded in the Uniform Commercial Code (UCC), which governs commercial transactions, including negotiable instruments like checks. As technology has advanced, the legal framework has evolved to recognize electronic transactions, provided they meet specific conditions such as having the necessary authorization and being capable of capturing the essential information of a traditional check. This development underscores the growing acceptance of digital forms of payment in business and financial transactions, allowing more flexibility and convenience in how checks are issued and processed.

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Yes, paper checks are the only legal form.

Yes, but only if signed in ink.

No, any form of writing suffices.

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