Foster forges Greta's signature on a check "payable to the order of Foster" drawn on Greta's account in Hearthside Bank. Most likely,if the bank pays the check
A)the Federal Reserve will reimburse all parties for their costs.
B)the loss will be apportioned among all of Hearthside's customers.
C)Greta will be liable for the amount.
D)Hearthside will have to recredit Greta's account.

Question

Quizplus · Accepted Answer

Hearthside Bank will have to recredit Greta's account because the bank is responsible for verifying the authenticity of signatures on checks it processes. If a signature is forged, the bank is liable for the loss.

Foster Forges Greta's Signature on a Check "Payable to the Order