Certified Regulatory Compliance Manager (CRCM) — Question 165
A ____________ must settle for an item with its administrative bank, whether or not it received the item from that bank. Settlement with its administrative bank is deemed to be settlement with the Reserve Bank that sent the item.
Answer options
- A. Paying bank
- B. Clearing Agent
- C. Regulation J
- D. Regulation CC
Correct answer: A
Explanation
The correct answer is A, Paying bank, as it refers to the institution responsible for settling transactions with its administrative bank. The other options, B (Clearing Agent), C (Regulation J), and D (Regulation CC), do not pertain to the requirement of settling items with an administrative bank.