If a Bank Pays a Check That Bears a Forged

question 43

Multiple Choice

If a bank pays a check that bears a forged signature of the drawer,the transaction will be treated as one in which:

• A)the bank paid out of the depositor's funds under Article 3 of the Uniform Commercial Code.
• B)the bank paid out of its own funds under Article 3 of the Uniform Commercial Code.
• C)the bank paid out of its own funds under Article 4 of the Uniform Commercial Code.
• D)the bank paid out of the depositor's funds under Article 4 of the Uniform Commercial Code.

---

Definitions:

Mutually Exclusive Projects

In capital budgeting, projects that automatically exclude one another. Projects are mutually exclusive either because they’re different approaches to doing the same thing or because limited resources preclude doing more than one.

Meeting Need

The process or action of satisfying a requirement, demand, or essential condition.

Profitability Index

A calculation used to assess the desirability of an investment, based on its present value of future cash flows relative to its initial cost.

NPV Profile

A graph that depicts the relationship between a project's net present value (NPV) and various discount rates, helping to assess the project's risk and potential profitability.