While banking procedures are designed to prevent misuse of checks, it is a good idea to use a:
A) restricted endorsement
B) qualified endorsement
C) pure endorsement
D) simple endorsement

Question

Quizplus · Accepted Answer

A restricted endorsement limits how the check can be used. It requires the payee to write "For Deposit Only" on the back of the check and then sign their name. This way, the check can only be deposited into the payee's account and cannot be cashed or endorsed over to another person. This helps prevent fraud and ensures that the intended recipient receives the funds.

While Banking Procedures Are Designed to Prevent Misuse of Checks