Mycha indorsed a check from her aunt by signing her name on the back, but she dropped it on the subway on the way to the bank. The check is now comparable to cash because it is a bearer instrument.

Question

Mycha indorsed a check from her aunt by signing her name on the back, but she dropped it on the subway on the way to the bank. The check is now comparable to cash because it is a bearer instrument.

Quizplus · Accepted Answer

Since Mycha endorsed the check by signing her name on the back without specifying a new payee, the check becomes a bearer instrument. This means whoever holds the check can cash it, similar to cash.

Mycha Indorsed a Check from Her Aunt by Signing Her Name