Clay issues a check payable to Discount Mart. Ernestina, Discount's cashier, forges the store's indorsement and deposits the check in her bank account. Clay's bank, First Friendly Bank, pays the check. Clay can recover from

A. Ernestina, who can recover from First Friendly Bank.
B. First Friendly Bank, which cannot recover from Ernestina.
C. First Friendly Bank, which can recover from Ernestina.
D. no one.


Answer: C

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