Additional Deposits Tests

Question 1

At which of the following locations may a collecting bank NOT present an item?

a. A place requested by the paying bank
b. A place requested by the nonbank payor if payable by the nonbank payor
c. Through a clearinghouse
d. Any bank for which presentment of the item would be convenient

Answer 1

d. Any bank for which presentment of the item would be convenient

Question 2

For what can a Federal Reserve Bank be liable when transmitting payment orders through the Fedwire?

a. Consequential damages
b. Interest on funds not properly received
c. Any damages by agreement with the sender
d. Punitive damages not set forth in an agreement

Answer 2

b. Interest on funds not properly received

Question 3

When it returns a check to the Federal Reserve, for which of the following may a returning bank NOT warrant?

a. The presenting bank’s endorsement
b. The check is being returned within the time deadlines
c. The bank is authorized to return the check
d. The check has not been altered

Answer 3

a. The presenting bank’s endorsement