Clyde Issues a Check Payable to Discount Mart

Multiple Choice

Clyde issues a check payable to Discount Mart. Ethel, Discount's cashier, forges the store's indorsement and deposits the check in her bank account. Clyde's bank, Farmers State Bank, pays the check. Clyde can recover from​

A) ​Ethel, but not the bank.
B) ​the bank, which cannot recover from Ethel.
C) ​the bank, which can recover from Ethel.
D) ​neither Ethel nor the bank.