Which of the Following Is True of a Collecting Bank

question 53

Multiple Choice

Which of the following is true of a collecting bank?

• A) The relationship between a collecting bank and the owner of an item, once settled, becomes a debtor-creditor relationship.
• B) A collecting bank is an agent of the owner of an item until settlement becomes final.
• C) A collecting bank may be a sub-agent of the owner until settlement becomes final.
• D) All of these are true.
• E) None of these are true.

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Definitions:

Mere-Exposure Effect

A psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them.

Reciprocal Liking

The phenomenon where people tend to like others who like them back.

Proximity

The physical closeness or distance between people or objects, often influencing relationships and interactions.

Physical Availability

The degree to which a product or service can be obtained by the consumer, often relating to its distribution, placement, and stock levels in the marketplace.