Asked by grace kelly on May 12, 2024
Verified
What is the latest date that Arturo will be available to use the funds from both checks?
A) The following Monday, which is five business days after the deposit of the check which is outside the same Federal Reserve Bank area.
B) Thursday, which is three business days after the deposit of the check which is outside the same Federal Reserve Bank area.
C) Tuesday, which is twenty-four hours after the deposit of both checks.
D) Wednesday, which is two business days after the deposit of both checks.
E) Thursday, which is three business days after the deposit of both checks.
Federal Reserve Bank
One of the 12 regional banks that make up the Federal Reserve System, acting as the central banking system of the United States.
Business Days
Days of the week when business is typically conducted, usually Monday through Friday, excluding public holidays.
Local Account
An account that is specific to a particular geographical location or jurisdiction, often referring to banking or services limited to a local area.
- Comprehend cash availability rules, including the time frames for fund availability after check deposits.
Verified Answer
AM
aryan madaanMay 13, 2024
Final Answer :
A
Explanation :
Under the Federal Reserve's Regulation CC, local checks (like the one from Simon) must be made available by the next business day, while non-local checks (like the one from Zina from Atlanta) can take up to five business days. Since Arturo deposited the checks on Monday, the funds from the local check would be available by Tuesday, but he would have to wait until the following Monday for the funds from the non-local check, making option A correct.
Learning Objectives
- Comprehend cash availability rules, including the time frames for fund availability after check deposits.