Which of the Following Statements Is True for a Restrictive

question 27

Multiple Choice

Which of the following statements is true for a restrictive indorsement?

• A)A person who purchases a check indorsed "for collection",automatically converts it even if the indorser received the amount paid for it.
• B)If an indorser merely signs his name and does not specify to whom the instrument is payable,he has indorsed the instrument in restriction.
• C)The person who takes an instrument with a restrictive indorsement need not pay for the instrument consistently with the indorsement.
• D)Indorsements for collection or deposit are restrictive indorsements.

---

Definitions:

Cation

A cation is a positively charged ion that results from the loss of one or more electrons by an atom.

Anion

A negatively charged ion, attracted to the anode during electrolysis, typically formed by the gain of electrons.

Anion

A negatively charged ion, which is formed when an atom gains one or more electrons.

KCN

Potassium cyanide, a highly toxic compound that can release cyanide ions in solution, used in various industrial processes and, historically, in gold mining.