Curt Issues a Check Payable to Discount Mart

question 28

Multiple Choice

Curt issues a check payable to Discount Mart. Ethel, Discount's cashier, forges the store's indorsement and deposits the check in her bank account. Curt's bank, Farmers Bank, pays the check. Curt can recover from

• A)Ethel, but not the bank.
• B)the bank, which cannot recover from Ethel.
• C)the bank, which can recover from Ethel.
• D)neither Ethel nor the bank.

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Loanable Funds

Describes the market where savers provide funds to borrowers, influencing interest rates through supply and demand.

Usury Law

Usury laws are regulations governing the interest rates that can be charged on loans, designed to protect consumers from exorbitant rates and predatory lending practices.

Loanable Funds

The market where savers supply funds for loans to borrowers, influenced by interest rates and government policies.