Trudy forges Uma's signature on a check "payable to the order of Trudy" drawn on Una's account in Verity 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 Verity's customers.
C) Uma will be liable for the amount.
D) Verity will have to recredit Uma's account.

Question

Quizplus · Accepted Answer

Verity Bank will have to recredit Uma's account because the signature was forged, making the check unauthorized. The bank is responsible for verifying the authenticity of signatures on checks it processes.

Trudy Forges Uma's Signature on a Check "Payable to the Order