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

question 65

Multiple Choice

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

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

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Definitions:

Student Loan Interest Deduction

A tax deduction available for the interest paid on student loans used for higher education, which can reduce taxable income.

Child Support Payment

Payments made by a noncustodial parent to assist with the financial support of their children.

Alimony Payment

Payments made to a spouse or ex-spouse under a divorce or separation agreement, potentially deductible for the payer.

Deductible Student Loan Interest

Refers to the interest paid on a qualified student loan which may be deducted from income when calculating federal income tax.