James Draws a Check on His Account at First National

Multiple Choice

James draws a check on his account at First National Bank payable to the order of Terry.If First National does not pay the check when Terry presents it for payment,then:

A) both James and the bank are liable to Terry.
B) James is liable to Terry on the basis of drawer's obligation.
C) James transfers his duties as a drawer to the drawee bank and the bank is liable.
D) neither James nor the bank is liable to Terry.