Kelly Wrote a Check to Trish, Which Trish Immediately Changed

question 5

Multiple Choice

Kelly wrote a check to Trish, which Trish immediately changed from $20 to $120. She negotiated the check to Carl for value, who in turn took it to Kelly's bank for certification. Kelly's bank checked her account and certified the check since there were sufficient funds to cover the check. Thereafter, Carl gave the check to General Motors as part of the down payment for his car. G.M. presents the check to Kelly's bank for payment and they discover the alteration. The bank:

• A) can sue G.M. for breach of presentment warranty of no alteration.
• B) can charge Carl's account for $120.
• C) can refuse to pay G.M. more than $20.
• D) must pay G.M. $120 and cannot sue them for breach of warranty.

---

Definitions:

Transfer Payments

Transactions where no goods or services are exchanged, involving the reallocation of money from one party to another, often by the government to support individuals or groups.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy public needs or initiate government activities.

Social Security

A government program that provides pensions, disability insurance, and benefits to retirees, their dependents, and disabled workers.

Welfare Benefits

Government-provided assistance programs aimed at supporting the well-being of individuals and families in need.