American Bankers Association Exam CRCM Topic 10 Question 77 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 77
Topic #: 10

[All CRCM Questions]

The sender agrees to indemnify each Reserve Bank for:

AAny loss or expense resulting from sender's lack of authority

BAny action taken by the Reserve Bank within the scope of its authority in the handling of the item

CAn electronic item that is not a substitute check is not liable for any amount paid by a Reserve Bank that is attributable to the Reserve Bank's own lack of good faith or failure to exercise ordinary care

DAny warranty made by the Reserve Bank under Regulation J, Regulation CC, or the UCC

Show Suggested Answer

Suggested Answer: B

by Lai at Nov 23, 2023, 06:20 AM

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Peggy

1 months ago

Haha, 'any loss or expense resulting from sender's lack of authority' - that's a good one. I bet someone's tried that excuse before.

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Alexia

2 days ago

Glen: I wouldn't want to be caught trying to pull a fast one on them.

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Glen

16 days ago

User 2: Definitely not, they have strict rules for indemnification.

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Mitzie

18 days ago

User 1: Yeah, that excuse probably doesn't fly with the Reserve Bank.

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Barabara

1 months ago

Ugh, these legal questions are the worst. I hope I can at least remember the key points from the study guide.

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Shayne

1 months ago

Hmm, I'm not sure. I'm leaning towards D, but I'll have to double-check the regulations.

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Lavina

3 days ago

Annice: I'll have to look into the regulations to be sure, but those options seem plausible.

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Annice

4 days ago

User 2: That makes sense, but I believe it might also be D) Any warranty made by the Reserve Bank under Regulation J, Regulation CC, or the UCC.

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Emilio

17 days ago

User 1: I think it's actually A) Any loss or expense resulting from sender's lack of authority.

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Ria

2 months ago

Okay, this seems straightforward. I think the correct answer is B.

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Winfred

1 months ago

User 2: I agree, the sender agrees to indemnify each Reserve Bank for any action taken by the Reserve Bank within the scope of its authority in the handling of the item.

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Alida

2 months ago

User 1: I think the correct answer is B.

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Daisy

2 months ago

User 2: I agree, the sender agrees to indemnify each Reserve Bank for any action taken by the Reserve Bank within the scope of its authority in the handling of the item.

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