Which of the following is/are included in the persons covered under Fedwire transfer coverage?
Which of the following is/are included in the persons covered under Fedwire transfer coverage?
Under Fedwire transfer coverage, the persons included are those who are directly involved in the process of sending or receiving payment orders. This includes Reserve Banks sending or receiving payment orders, senders of payments to a Reserve Bank, and banks receiving payments from a Reserve Bank. The Fedwire system operates as a real-time gross settlement system that facilitates the transfer of funds and securities between its participants, which naturally involves these entities.
The correct answer is A. Reserve Banks sending or receiving payment orders. In the context of Fedwire transfer coverage, the focus is on the role of Reserve Banks in the process of sending or receiving payment orders through the Fedwire system. This system is a real-time gross settlement system that facilitates the transfer of funds and securities between participants, and the Reserve Banks play a central role in this process. Therefore, persons covered under Fedwire transfer coverage primarily include the Reserve Banks themselves in their capacity as entities that either send or receive payment orders as part of the system's operations.