Maxine indorsed her paycheck by signing her name on the back, but she lost it on the way to the bank. The check is now comparable to cash because it is a bearer instrument.

Question

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When Maxine endorsed her paycheck by signing her name on the back, she turned the check into a bearer instrument. This means that whoever has possession of the check can cash it, just like cash. If Maxine lost the check, someone else could potentially find it and cash it.

Maxine Indorsed Her Paycheck by Signing Her Name on the Back