Check Clearing and Settlement
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Questions and Answers

Which type of checks do not require interbank clearing or settlement?

  • On-us checks (correct)
  • Correspondent checks
  • Transit checks
  • Interbank checks

    • What are the different ways in which interbank or transit checks can clear and settle?

  • Direct presentment, Reserve Banks, check-collection services, or imaging systems
  • Direct presentment, correspondent financial institution, check-collection services, or independent clearing house
  • Direct presentment, correspondent financial institution, Reserve Banks, or imaging systems
  • Direct presentment, correspondent financial institution, clearing house, or Reserve Banks (correct)

    • What do depository financial institutions use to settle the checks they collect?

  • Accounts on their books or Reserve Bank reserve account (correct)
  • Correspondent financial institutions or independent clearing houses
  • Federal Reserve's National Settlement Service (NSS)
  • Direct presentment or imaging systems

    • What do smaller depository institutions typically use for check-collection services?

    <p>Correspondent financial institutions or Reserve Banks</p> Signup and view all the answers

    What is the purpose of the Federal Reserve's National Settlement Service (NSS)?

    <p>To effect settlement for checks exchanged each business day</p> Signup and view all the answers

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