____________ is an agent or a subagent of the owner of an item; agency terminates when it receives payment for an item in finally collected funds and makes the proceeds available to the sender, and the time for commencing all actions against it has expired.
A clearing agent is responsible for the process of sorting, exchanging, and reconciling payments in financial transactions. This entity's role as an agent or subagent of the owner of an item terminates once it receives payment in finally collected funds, makes the proceeds available to the sender, and the time for commencing any legal actions against it has expired. The detailed description in the question fits the responsibilities typically associated with a clearing agent.
The correct answer is B. The Reserve Bank. This description outlines the role of the Reserve Bank as an agent (or subagent) of the owner of an item in the process of clearing and settlement. The agency relationship is considered terminated when the Reserve Bank receives payment in finally collected funds for the item and makes those proceeds available to the sender, and when the period within which legal actions against it could be initiated has expired. This definition encapsulates the Reserve Bank's role in facilitating financial transactions, ensuring the secure and efficient transfer of funds, and its position within the legal framework governing these transactions.