Certified Regulatory Compliance Manager (CRCM) — Question 152

One of the check collection requirements is sending items to Reserve Banks. In this requirement:

Answer options

• A. A sender other than a Reserve Bank may send any item to the Reserve Bank with which it maintains an account
• B. The following parties are deemed to have handled items, in this order: "¢ The initial sender "¢ The initial sender's administrative Reserve Bank "¢ The Reserve Bank that receives the item from the initial sender "¢ Any other Reserve Bank that receives the item from a Reserve Bank
• C. Reserve Banks must receive cash items and other items (checks) at par
• D. A foreign bank that maintains reserves under the International Banking Act of 1978

Correct answer: A, B, C

Explanation

Option A is correct because it accurately describes that any sender apart from a Reserve Bank can send items to a Reserve Bank where they maintain an account. Option B provides a sequence of parties involved, but it does not directly address the requirement of sending items. Option C discusses the handling of cash and checks, while Option D refers to a foreign bank's reserves which is not relevant to the check collection requirement.