Which of the following statements regarding Check 21 is false?
A) It allows banks to exchange checks electronically.
B) Before this system, paper checks were flown around the country from bank-to-bank to complete the check-clearing process.
C) It requires that banks exchange check images.
D) It significantly reduced float.

Question

Quizplus · Accepted Answer

Check 21 facilitates the electronic exchange of checks but does not require banks to exchange check images; it allows but does not mandate this practice. Banks can choose to exchange electronic images of checks instead of the physical checks themselves to speed up the clearing process.

Which of the Following Statements Regarding Check 21 Is False