American Bankers Association CRCM Exam - Topic 1 Question 126 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 126
Topic #: 1

When returning items to a Reserve Bank, the paying and returning banks:

ACannot disclaim the warranties, authorizations, and agreements whether or not the returned check bears an endorsement of the paying bank or returning bank

BAuthorize the Reserve Bank to handle the item in accordance with Regulation J and the operating circulars

CWarrant that the check bears all endorsements applied by all parties that handled the check in paper or electronic form

Dwill not be liable for the failure of a paying bank, collecting bank, or a nonbank payer to pay for an item

Show Suggested Answer

Suggested Answer: A, B, C

by Farrah at May 11, 2026, 05:36 AM

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Brittni

16 days ago

I think option B sounds familiar because we discussed how banks need to follow specific regulations when handling returns.

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