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

Question

Quizplus · Accepted Answer

First Federal Bank is liable for paying on a forged indorsement and must recredit Dru's account.

Dru Signs a Check "Pay to the Order of Eppie