Sasha Drew a Check Payable to the Order of Janice

question 5

Multiple Choice

Sasha drew a check payable to the order of Janice on First Bank. Janice indorsed the check and sold it to Karl, who took the check to First Bank and requested that the bank certify the check. The bank did so. Later, Karl presented the check for payment, but First Bank refused to pay. In this scenario, which of the following parties may Karl sue for not receiving payment?

• A) First Bank
• B) Sasha
• C) Janice
• D) Sasha and Janice

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Definitions:

Reserves

refers to funds or materials set aside or saved for future use or emergencies, often in the context of banking or natural resources.

Checkable Deposits

Bank account balances that can be accessed using checks, debit cards, or electronic means to make payments directly.

United Bank

A generic term that may refer to any bank operating under the name "United Bank" in various parts of the world.

Excess Reserves

The reserves held by banks over and above the minimum required by the central bank, available for lending or investment.