When a Bank Pays a Check on Which the Drawer's

question 59

True/False

When a bank pays a check on which the drawer's signature is forged, generally the customer suffers the loss.

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Definitions:

Target Payoffs

Expected or desired financial returns from an investment strategy or economic activity.

Collusion

An agreement between firms, typically secret, to limit competition among themselves, such as by setting prices or output levels.

Diagram

A simplified drawing showing the appearance, structure, or workings of something in a conceptual or visual form.

Profits

The financial gain realized when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.