Asked by Norma Ocampo on Jun 15, 2024
Verified
Are the funds from both checks required to be available at the same time for Arturo to use?
A) Yes, because they were deposited at the same time.
B) No, because they were written from two different individuals.
C) Probably not, because the checks will be drawn on banks within different Federal Reserve Bank areas, thus, the requirements for availability are different.
D) Yes, because the checks will be drawn on the same bank.
E) Yes, because the UCC requires that all funds be available for use within twenty-four hours of deposit.
Federal Reserve Bank
The central banking system of the United States, responsible for setting monetary policy.
Funds Availability
Funds availability is a banking term that refers to the length of time before a deposited check or electronic payment clears and becomes available for withdrawal or use.
UCC
The Uniform Commercial Code represents a detailed collection of statutes that regulate every commercial transaction across the United States.
- Understand the regulations governing access to cash, such as the periods within which funds become available following cheque deposits.
Verified Answer
TH
Tamara HarrityJun 21, 2024
Final Answer :
C
Explanation :
The availability of funds from checks deposited can vary based on the banks on which they are drawn, especially if they are in different Federal Reserve Bank areas. Checks from different geographic locations may be subject to different processing times.
Learning Objectives
- Understand the regulations governing access to cash, such as the periods within which funds become available following cheque deposits.