Question

Which type of check endorsement includes your signature on the back of the check you've received and a note with restrictions on how the check can be used?

A. Restrictive endorsement
B. Qualified endorsement
C. Blank endorsement
D. Special endorsement

Answer 1

A restrictive endorsement includes a signature and specific instructions on the back of the check, limiting its use, such as deposit only instructions.

Step-by-step explanation:

The type of check endorsement that includes your signature and a note with restrictions on how the check can be used is called a restrictive endorsement. This type of endorsement limits the use of the check to the purpose specified in the note. For example, writing "For deposit only" along with your signature on the back of the check is a restrictive endorsement, which means the check can only be deposited into the account indicated and cannot be cashed directly or further endorsed to someone else.