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Question 170

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.

    Correct Answer: A

    A paying bank must settle for an item with its administrative bank, regardless of whether it received the item from that bank. Settlement with its administrative bank is considered to be settlement with the Reserve Bank that sent the item. This process ensures that the settlement of transactions is streamlined and efficiently managed within the banking system.

Discussion
Cam22Option: A

A paying bank 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 considered to be settlement with the Reserve Bank that sent the item. This ensures smooth settlement processes within the banking system.