Faye Forges Greta's Signature on a Check "Payable to the Order

question 6

Multiple Choice

Faye forges Greta's signature on a check "payable to the order of Faye" drawn on Greta's account in Hearthside Bank. Most likely, if the bank pays the check​

• A) ​the bank will have to recredit Greta's account.
• B) ​the loss will be apportioned among all of the bank's customers.
• C) ​Greta will be liable for the amount.
• D) ​the Federal Reserve will reimburse all parties for their costs.

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Definitions:

Sunk Costs

Expenses that have already been incurred and cannot be recovered or altered, and should not be considered in future business decisions.

Cash Flow

The cumulative sum of funds moving into and out of a company, particularly influencing its liquid assets.

Opportunity Costs

The advantages that a person, business, or investor loses by selecting one option instead of another.

Sunk Costs

Past expenses that have already been incurred and cannot be recovered, and therefore should not affect future business decisions.