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Question 157

One of the check collection requirements is sending items to Reserve Banks. In this requirement:

    Correct Answer: B, C, D

    One of the check collection requirements is related to the proper handling and receipt of items by Reserve Banks. First, it is stated that the specified parties are deemed to have handled items in a specific order, which helps delineate the process for accountability (B). Additionally, Reserve Banks are required to receive cash items and other items (checks) at par value, ensuring they are processed without discounts (C). Lastly, a foreign bank maintaining reserves under the International Banking Act of 1978 is included in the check collection requirement, as it is part of the Federal Reserve System (D).

Discussion
Dex24Options: BCD

Per page 612 of the online book version, A should state, "A sender’s Administrative Reserve Bank may direct a sender other than a Reserve Bank to send any item to a specified Reserve Bank, whether or not the item is payable within that Reserve Bank’s district". As such, I don't think A is correct. However, B and C are.

Cam22

Horrible. fix this question