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

6 days 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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Barabara

10 days 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

11 days ago

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

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1 months ago

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

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