National Check Professional (NCP) Certification Practice Test

What does Reg CC implement?

1. Expedited funds availability act

2. Check clearing for Check 21

3. Both A and B

4. Federal Reserve policies

The correct answer is: Both A and B

Regulation CC, officially known as the "Expedited Funds Availability Act," is designed to govern the availability of funds deposited into checking accounts and to facilitate the collection and return of checks. This regulation aims to ensure that consumers can access their deposited funds promptly while also establishing clear guidelines for financial institutions regarding when funds must be made available to account holders. In addition to addressing funds availability, Regulation CC incorporates rules related to the Check Clearing for the 21st Century Act, commonly referred to as Check 21. This act allows banks to handle checks electronically, streamlining the check clearance process and reducing the reliance on physical checks. By implementing these provisions, Regulation CC enhances the efficiency of check processing while maintaining consumer protections. Therefore, the correct answer acknowledges that Regulation CC encompasses both the Expedited Funds Availability Act and the Check Clearing for Check 21, meaning that it plays a critical role in regulating both the timing of funds availability and the modernization of check processing procedures.