Certified Regulatory Compliance Manager (CRCM) — Question 161

By presentation or transmission of an item a Reserve Bank warrants to a subsequent collecting bank and paying bank that:

Answer options

• A. The Reserve Bank has good title to the item
• B. The item has not been altered
• C. The item bears all endorsements applied by parties that have previously handled the item in paper or electronic form
• D. All of these

Correct answer: D

Explanation

The correct answer is D because the Reserve Bank guarantees all three aspects: good title, no alterations, and proper endorsements. Options A, B, and C are each specific guarantees, but they do not encompass the complete assurance provided by option D.