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:

FTC Complaint

A formal grievance filed with the Federal Trade Commission, concerning issues like fraud, unfair business practices, or consumer rights violations.

Misbranded Products

Products that are falsely labeled or advertised in a way that is misleading or deceptive.

Equal Credit Opportunity Act

A U.S. law that prohibits discrimination by lenders against any applicant, with respect to any aspect of a credit transaction, based on race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.

Public Assistance

Government programs designed to provide financial aid or services to individuals and families in need.