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 or 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.