Sarah Has a Checking Account at First Bank

question 58

Multiple Choice

Sarah has a checking account at First Bank.Orrin steals one of her blank checks, writes a check for $250, and then forges Sarah's signature.He then presents the check to First Bank for payment.First Bank pays the forged instrument.Which of the following statements is correct?

• A) First Bank will have to recredit the $250 to Sarah's account if she so requests, if Sarah was not found to be negligent.
• B) Sarah is primarily liable if she was negligent in allowing Orrin to take the blank check.
• C) Orrin is responsible to First Bank for the $250.
• D) All of these.

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Definitions:

Unemployed People

Individuals who are currently not working but are available for and seeking employment.

Other-Race Effect

A cognitive bias where individuals are more likely to recognize and differentiate faces of their own racial or ethnic group than those of other groups.

Religious Beliefs

Personal or shared beliefs regarding spiritual faith, worship practices, and the divine, which often guide moral judgement and actions.

Discrimination

Bias or inequitable actions against varied categories of individuals, mainly due to their race, age, or sexual orientation.