Which of the Following Is Correct with Respect to a Bank

question 58

Multiple Choice

Which of the following is correct with respect to a bank customer's duty to discover and report unauthorized signatures?

• A)The customer is required to exercise reasonable care and promptness to examine the bank statement.
• B)A customer's duty of examination includes checking the signatures of payees and indorsers.
• C)The bank is liable on all items with unauthorized signatures even if these canceled checks were returned to the customer four years prior to the discovery of the alterations.
• D)The bank is not required to exercise ordinary care in paying the items.

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Definitions:

Ringworm

A fungal infection of the skin characterized by ring-shaped, red, itchy patches.

Fungus

A kingdom of spore-producing organisms feeding on organic matter, including molds, yeast, mushrooms, and toadstools.

Sebaceous Glands

Glands located under the skin that produce sebum, an oily substance that lubricates skin and hair.

Apocrine Glands

Sweat glands, mainly found in the underarm and genital areas, that secrete a thicker sweat and are involved in scent and pheromone release.