Which of the Following Is Correct with Respect to a Bank

Multiple Choice

Which of the following is correct with respect to a bank customer's duty to discover and report unauthorized signatures?

A) The bank is liable on all items with unauthorized signatures even if these canceled checks were returned to the customer four years prior to the discovery of the alterations.
B) The customer is required to exercise reasonable care and promptness to examine the bank statement.
C) A customer's duty of examination includes checking the signatures of payees or indorsers.
D) The bank is not required to exercise ordinary care in paying the items.