A company stamps checks received in the mail with the words "For Deposit Only". This endorsement is called a(n)
A) blank endorsement.
B) rubber stamp.
C) restrictive endorsement.
D) operational endorsement.

Question

Quizplus · Accepted Answer

The endorsement "For Deposit Only" is a restrictive endorsement, as it limits the use of the check to only being deposited into the company's account and cannot be cashed or transferred to anyone else. A blank endorsement is when the payee signs the back of the check and makes it payable to anyone, while a rubber stamp is simply a tool used to apply an endorsement. An operational endorsement is not a commonly used term in banking or finance.

A Company Stamps Checks Received in the Mail with the Words