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Exam CRCM topic 1 question 176 discussion

Actual exam question from ABA's CRCM
Question #: 176
Topic #: 1
[All CRCM Questions]

While Presenting items for payment:

  • A. A Reserve Bank or a subsequent collecting bank may present an item for payment but doesn't send the item for presentment and payment
  • B. A Reserve Bank may send an item to a collecting bank with authority to present it for payment or send it for presentment and payment
  • C. A Reserve Bank may present an item for payment at the place requested by the paying bank, at a place requested by the nonbank payor, through a clearinghouse, or under a special collection agreement
  • D. Within a Reserve Bank's district, the Reserve Bank may present the item indirectly to the paying bank or a nonbank payor, as applicable
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Suggested Answer: BC 🗳️

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Cam22
4 months ago
Selected Answer: C
The correct answer is C. A Reserve Bank may present an item for payment at the place requested by the paying bank, at a place requested by the nonbank payor, through a clearinghouse, or under a special collection agreement. This option outlines the flexibility and various methods available to Reserve Banks for presenting items for payment, accommodating the preferences of paying banks or nonbank payors and leveraging the mechanisms of clearinghouses or specific collection agreements to facilitate the process efficiently.
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