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

Question

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

Quizplus · Accepted Answer

Since Wanda indorsed the check by signing her name on the back without specifying a new payee, it becomes a bearer instrument, meaning whoever holds the check can cash it.

Wanda Indorsed a Check from Her Cousin by Signing Her Name