Checks Are Cleared Between Private Banks By

question 100

Multiple Choice

Checks are cleared between private banks by:

• A) The 12 regional Federal Reserve banks.
• B) The Executive Branch of government.
• C) The Federal Reserve Board of Governors.
• D) State banking commissions.

Understand the concept of holder in due course and its importance in negotiable instruments law.

Identify the requirements for a party to achieve holder-in-due-course status.

Comprehend the shelter principle and its implications for subsequent holders.

Distinguish between primary and secondary liability on negotiable instruments.

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Definitions:

Contractually Agreed Upon Fee

A fee that parties have explicitly decided upon within a contract for services or goods.

Damages

Monetary compensation required to be paid as a remedy for a breach of contract or a tortious act.

Sarbanes-Oxley Act

A U.S. federal law established to protect investors by improving the accuracy and reliability of corporate disclosures.

Regulatory Body

A regulatory body is an organization established by the government to regulate specific industries, sectors, or practices, ensuring compliance with laws and protecting public interest.