Final answer:
The most suitable endorsement for a check being mailed for deposit is a restrictive endorsement to ensure additional security and prevent unauthorized cashing if the check is lost or stolen. correct answer is b) Restrictive endorsement .
Step-by-step explanation:
The correct type of endorsement for a check that is being mailed to the bank for deposit is a restrictive endorsement.
A restrictive endorsement adds extra security to the check as it includes a statement such as "For Deposit Only" above the endorser's signature. This restricts the check to being deposited into the account designated by the endorser. As such, even if the check were to be lost or stolen during mailing, it would be harder for someone else to cash it or deposit it into a different account.
On the other hand, a blank endorsement, which is simply the payee's signature, would turn the check into a bearer instrument, meaning anyone holding the check could potentially cash it. A special endorsement involves signing the check over to another party. And “Payable to order” involves a transaction where a check is written to a specific payee.
Therefore, when mailing a check to the bank for deposit, ensure you use a restrictive endorsement for better protection.