A Bank Will Not Be Liable for Payment of a Check

question 51

Multiple Choice

A bank will not be liable for payment of a check on which the drawer's signature has been forged if:

• A) the bank could not have detected the forgery through a reasonable investigation.
• B) there are more than two prior indorsers of the check.
• C) the bank gives a cashier's check in payment of the depositor's check.
• D) the drawer's negligence contributed substantially to the forging of the signature.

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Definitions:

Pledges Receivable

Amounts promised to an organization by donors that are recognized as assets before the cash is actually received.

Government Grants

Funds given by the government to individuals, organizations, or governments for specific purposes.

Labor Reports

Documents or publications detailing employment statistics, workforce conditions, and other data relevant to labor markets, often released by government agencies or other organizations.

Stock Market Reports

Financial analyses and summaries that provide information on the performance of stock markets and individual stocks.