Drew signs a check "pay to the order of Eppie" drawn on Drew's account in Fidelity Bank.Greta forges Eppie's indorsement.Fidelity pays the check.Most likely
A)Drew will be liable for the amount.
B)Eppie will have to pay Drew for the amount.
C)Fidelity will have to recredit Drew's account.
D)the Federal Reserve will reimburse all parties for their costs.

Question

Quizplus · Accepted Answer

Fidelity Bank is responsible for verifying endorsements before paying a check. Since Eppie's endorsement was forged, Fidelity must recredit Drew's account for the unauthorized payment.

Drew Signs a Check "Pay to the Order of Eppie