Certified Regulatory Compliance Manager (CRCM) — Question 150

An electronic image of an item together with electronic information describing that item in an approved format will be considered a valid instrument. Common forms of instruments are the following EXCEPT:

Answer options

• A. Checks: Drafts drawn on a bank and payable on demand
• B. Pay checks
• C. Cash items: Checks or other items payable on demand and collectible at par and accepted at the Reserve Bank
• D. Noncash items: Items that a Reserve Bank classifies as requiring special handling

Correct answer: B

Explanation

The correct answer is B, as paychecks are considered a form of noncash items and do not fit the criteria of valid instruments in this context. Options A, C, and D represent valid instruments that can be processed electronically, which is why they are not the correct answer.