Brandy Forges Caleb's Signature on a Check "Payable to the Order

question 15

Multiple Choice

Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature is​

• A) ​effective if an innocent third party accepts the check.
• B) ​effective to the degree that it matches Caleb's genuine signature.
• C) ​effective to the extent that Downtown Bank debits Caleb's account.
• D) ​not effective.

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Definitions:

Collateral

An asset that a borrower offers to a lender as a security for a loan, which can be seized if the loan is not repaid.

Savings Deposits

Bank accounts that pay interest on the money deposited, meant for saving rather than daily transactions.

Capital Formation

The process of building up a country's stock of real capital, such as buildings, machinery, and equipment, which is used for production.

Economy

The system of production, distribution, and consumption of goods and services within a society.