Certified Regulatory Compliance Manager (CRCM) — Question 160

____________ is an agent or a subagent of the owner of an item; agency terminates when it receives payment for an item in finally collected funds and makes the proceeds available to the sender, and the time for commencing all actions against it has expired.

Answer options

• A. Clearing agent
• B. The Reserve Bank
• C. Foreign bank
• D. Foreign banker

Correct answer: B

Explanation

The correct answer is B, The Reserve Bank, as it plays a pivotal role in financial transactions and ensures that payments are processed securely. The other options, while related to banking, do not specifically denote the authority that concludes the agency relationship upon payment receipt.