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Questions and Answers
Which type of checks do not require interbank clearing or settlement?
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?
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?
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?
What do smaller depository institutions typically use for check-collection services?
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What is the purpose of the Federal Reserve's National Settlement Service (NSS)?
What is the purpose of the Federal Reserve's National Settlement Service (NSS)?
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