Flores Forges Grendel's Signature on a Check "Payable to the Order

Multiple Choice

Flores forges Grendel's signature on a check "payable to the order of Flores" drawn on Grendel's account in Harbortown Bank. Most likely, if the bank pays the check

A) the Federal Reserve will reimburse all parties for their costs.
B) Grendel and the bank will each suffer half of the amount of the loss.
C) Grendel will be liable for the amount.
D) the bank will have to recredit Grendel's account.