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

question 34

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

---

Definitions:

Partners' Equity

The owners' claim on the business assets in a partnership, which equals the net worth of the business divided among its partners.

Net Income

The total revenue of a business minus the total expenses, indicating the company's profitability over a specific time period.

Capital Balances

The amount of money that owners have invested in a business, sometimes referred to as owner's equity or partners' equity in a partnership.