When a Bank Pays a Check on Which the Drawer's

question 59

True/False

When a bank pays a check on which the drawer's signature is forged, generally the customer suffers the loss.

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Definitions:

Market Rate

The prevailing price or interest rate at which goods, services, or securities are traded in the open market.

Discount

A reduction in the price of goods or services offered to customers, usually as a motivation to encourage sales.

Discount on Bonds Payable

This term refers to the difference between a bond's face value and its selling price when the bond is sold for less than its face value.

Contract Rate

The agreed-upon interest rate specified in a contract, particularly relevant in loans and financing agreements.