Certified Regulatory Compliance Manager (CRCM) — Question 147

___________ governs the collection of checks and other cash and noncash items and the handling of returned checks by Federal Reserve Banks. It also covers the rules governing funds transfers sent through the Fedwire. Its purpose is to provide rules for collecting and returning items and settling balances.

Answer options

• A. Regulation Z
• B. Regulation X
• C. Regulation J
• D. None of the above

Correct answer: C

Explanation

Regulation J specifically regulates the collection of checks and other cash items, along with the handling of returned checks by Federal Reserve Banks, and outlines the rules for funds transfers through Fedwire. Regulation Z pertains to truth in lending, while Regulation X deals with real estate settlement procedures, making them irrelevant in this context.