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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Ria

12 days ago

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

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Veronique

16 days ago

I'm not sure, but I think the answer might be D) Any warranty made by the Reserve Bank under Regulation J, Regulation CC, or the UCC.

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Dominque

19 days ago

I agree with Dorthy, because the sender should be responsible for any loss due to lack of authority.

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Dorthy

21 days ago

I think the answer is A) Any loss or expense resulting from sender's lack of authority.

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