You have just received a check. Your account number is #099-542-8. Write the following endorsement in the space provided below, allowing you to cash the check.
\begin{tabular}{l}
Pay to the order of \
Your Signature \
Poker Doe \
099-542-8 \
\hline
\end{tabular}
\begin{tabular}{l}
for deposit only \
Your Signature \
\hline $099-542-8$ \
\hline
\end{tabular}
(i)
Your Signature 099-542-8
(i)
$\$
099-542-8
$\$
$\$
(i)
(i)
Identify what type of endorsement it is.
A. restrictive endorsement
B. full endorsement
C. blank endorsement
Answer (2)
The first endorsement is a full endorsement.
The second endorsement is a restrictive endorsement.
The third endorsement is a blank endorsement.
Therefore, the types of endorsements are full, restrictive, and blank.
Explanation
Analyzing the Endorsements Let's analyze the three endorsement options provided and classify each one based on its type: blank, restrictive, or full.
Identifying the First Endorsement The first endorsement option is:
Pay to the order of Your Signature Poker Doe 099-542-8
This endorsement specifies that the check is payable to 'Poker Doe'. This means the check is being transferred to a specific person. Therefore, this is a full endorsement .
Identifying the Second Endorsement The second endorsement option is:
for deposit only Your Signature 099-542-8
This endorsement limits the use of the check to deposit only. This restricts how the check can be used. Therefore, this is a restrictive endorsement .
Identifying the Third Endorsement The third endorsement option is:
Your Signature 099-542-8
This endorsement only contains the signature and the account number. It does not specify to whom the check is payable or limit its use. Therefore, this is a blank endorsement .
Conclusion In summary:
The first endorsement is a full endorsement .
The second endorsement is a restrictive endorsement .
The third endorsement is a blank endorsement .
Examples
Understanding different types of endorsements is crucial in banking and finance. For example, if you want to ensure a check is only deposited into your account, you would use a restrictive endorsement. If you want to give the check to someone else, you would use a full endorsement. A blank endorsement is the simplest but also the riskiest, as anyone can cash the check if they possess it. Knowing these distinctions helps you manage your checks securely and effectively.
The first endorsement is a full endorsement, allowing transfer to Poker Doe. The second endorsement is a restrictive endorsement, allowing deposit only. The third endorsement is a blank endorsement, permitting anyone with the check to cash it.
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