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Exam CRCM topic 1 question 178 discussion

Actual exam question from ABA's CRCM
Question #: 178
Topic #: 1
[All CRCM Questions]

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.

  • A. Paying bank
  • B. Clearing Agent
  • C. Regulation J
  • D. Regulation CC
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Suggested Answer: A 🗳️

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Cam22
4 months ago
Selected Answer: 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.
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