Certified Regulatory Compliance Manager (CRCM) — Question 163

While Presenting items for payment:

Answer options

• A. A Reserve Bank or a subsequent collecting bank may present an item for payment but doesn't send the item for presentment and payment
• B. A Reserve Bank may send an item to a collecting bank with authority to present it for payment or send it for presentment and payment
• C. A Reserve Bank may present an item for payment at the place requested by the paying bank, at a place requested by the nonbank payor, through a clearinghouse, or under a special collection agreement
• D. Within a Reserve Bank's district, the Reserve Bank may present the item indirectly to the paying bank or a nonbank payor, as applicable

Correct answer: B, C

Explanation

Option B is correct because it accurately describes the authority of a Reserve Bank to send an item to a collecting bank for presentment and payment. Option C is also correct as it details the various locations and agreements under which a Reserve Bank can present items. Options A and D are incorrect as they do not fully cover the authority and procedures involved in the presentment of items for payment.